Inflation plunges lower than forecasters expected as it sinks from 8.7 to 7.9%

The Consumer Price Index (CPI) rate of inflation for June 2023 has dropped from 8.7 percent to 7.9 percent. Prior to today, experts and economists had predicted that CPI inflation would fall to 8.2 percent, with attention focussing on the core rate – the change in the costs of goods and services. In a bid to mitigate the impact of inflation, the Bank of England has raised the base rate 13 consecutive times in the past year. As inflation decreases, experts predict the base rate to jump up to 5.5 percent in the Bank’s next monetary committee meeting. While mortgage rates are not pegged directly to the base rate, it is warned that another big hike cannot be good news for mortgage borrowers – or renters.