The ONS reported that the CPI was 3.8% in both the 12 months to August and the 12 months to July, a rise from 3.6% in the 12 months to June.
Meanwhile, the CPI including owner-occupiers’ housing costs (CPIH) was 4.1% in the 12 months to September, which was also unchanged from August.
The latest figures from the ONS show that inflation is still significantly above the target of 2%, and the International Monetary Fund (IMF) forecast last week that predicted inflation would continue to rise this year. In response, Russ Mould, investment director at AJ Bell, said the Bank of England was “stuck between a rock and a hard place” because of the combination of inflation and a “weak jobs market”, the latter of which he noted would “traditionally call for rate cuts”.
Mortgage market remains ‘resilient’
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau (MAB), said of the latest inflation figures: “While inflation holding steady at 3.8% reflects the persistent pressures from political uncertainty and elevated costs, the mortgage market continues to remain resilient. In fact, many don’t realise they’re now in a prime position to get onto the property ladder – especially compared to this time last year, or even six months ago.
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“A ‘keep calm and carry on’ approach is needed here. While inflation remains well above the 2% target, the housing market remains in a strong place, and more aspiring buyers than ever are realising that they can get on the ladder sooner.
“Affordability is improving, and customers are benefitting from higher average borrowing limits and a wave of new, innovative products. First-time buyer appetite is strong, with a 9.7% uplift on the number of mortgage applications year to date.”
