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Inflation data March 2023

ended 18. April 2023

Tomorrow morning at 07:00, the latest official inflation data will be out. Given the impact inflation is having on the economy, this story will be widely covered, so if you'd like the chance to see your views in the local, national and trade media, please answer the following questions:

  • Exactly how hard is inflation impacting UK businesses in your experience?
  • Do you think the Bank of England's rate increases in an attempt to control inflation have been the right strategy? 
  • Do you expect inflation to fall in the months ahead, rise - or stay around its current level? If so, why?
  • What impact is the current level of inflation having on borrowers and/or savers?

Any other thoughts, jot them down.

7 responses from the Newspage community

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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Inflation remains a serious danger to the United Kingdom's economic stability and future prosperity. Interest rates have risen with great enthusiasm, much like they've been invigorated by a small blue pill, yet they've failed to stop the continued inflationary spiral. Both the Bank of England and the government have attempted, but have been unsuccessful, in resolving the issues so far. It seems we're at the point where we may need to enlist the help of the Avengers, just to see if they can bring some order to this financial fiasco.
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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Inflation has been a harbinger of doom for the last 12 months, but things are about to get much easier. Inflation is falling and is set to fall to near target of 2% by the end of the year. This will bring much needed rate cuts, allowing businesses and households to breathe again. Mortgage and commercial borrowing rates will come back down as will the upward pressure on rents. It might take three months for the Bank of England to catch up with whats going on, so rate cuts may be delayed.
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Graham Cox
Director at Bridging Hub
The USA is starting to see sharp falls in inflation, and I expect the UK will follow suit over the next few months.

Unfortunately, the Bank of England has no real choice but to raise the base rate when other central banks are doing likewise. Failing to do so would see sterling plummet against foreign currencies, further fuelling inflation as import prices rise.

Hopefully we're at the tail end of base rate hikes, and we might even see some cuts towards the year's end.
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Gary Bush
Financial Adviser at MortgageShop.com
Inflation is causing many knock-on effects to businesses and consumers - the cost effect is far-reaching sadly, businesses do seem to be heads-down and pushing through though from our litmus test. I don't see that we had anything else in our armory to use against double-digit inflation than the Bank of England base rise increases. We can see inflation coming under control just before the summer break, which should allow the BOE to relax a little in its 6 weekly Monetary Policy Committee meetings. Mortgage applicants now appear to be getting on with business regardless of the mortgage rate situation - we have seen good stability return in the all-important fixed rates and this has breathed confidence back into the market. It's busy out there from all fronts: purchase, first-time-buyer, remortgages, and product transfers.
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Mark Grant
Business Finance Adviser at The Business Finance Branch
Macro global events triggered steep rises in inflation via soaring energy and food costs, and as we move beyond 12 months since these took hold we can reasonably expect a significant reduction in the inflation rate. That said, inflation has been running at well over 10% year on year for a while, and costs aren't now going to fall, so businesses remain under pressure. These same pressures are being felt by their suppliers, so continued support in terms of cashflow funding will be necessary to level out the cash that businesses need to pay overheads today vs. their income at a later point from customer payments. Businesses that plan for price inflation will stand a better chance of riding out this cycle in our experience.
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Adam Smith
Founder at Alfa Mortgages
The Bank of England and their classic move to control inflation - raising interest rates. It's like they're playing a game of Jenga with the economy, carefully removing one block at a time to keep everything from crashing down. And the beauty of it all? It's not some top-secret algorithm or mystical potion - it's just plain old economics!

Savers are feeling like the real winners here - with increased interest rates, their money is growing faster than bamboo. But for borrowers, it's like walking a tightrope blindfolded - a slippery slope that keeps getting steeper with every rate hike.
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Bradley Lay
Founder at Peak Capital Group
With the release of the March 2023 inflation data, anxiety among minimum-wage workers is palpable. A large majority of the UK workforce are struggling to make ends meet, having already felt the impact of rising energy costs, as well as the impact of existing inflation this year to date. With no end in sight, it's becoming increasingly clear that the Bank of England's rate increases are not a solution but a hindrance to the average households monthly/weekly budget. As inflation continues to rise, the pressure on those barely scraping by is becoming unbearable. Will the government take action to support these workers, or will they be left to suffer the consequences of inflation alone? We must brace ourselves for the harsh reality of life on minimum wage in the face of inflation.