UK inflation drops down to 1.7% - well below target for first time since 2021

Approved Finance Group: Inflation Update and Market Insights

The UK inflation rate has eased to 1.7%, marking the first time since 2021 that inflation has fallen below the Bank of England's target. This is a notable drop from the 2.2% recorded last month in the Consumer Prices Index (CPI), and lower than analysts' expectations, who predicted a decline to just 1.9%.

For businesses and individuals seeking financial solutions, Approved Finance Group is here to help you navigate these economic shifts. As a leading finance broker specialising in business finance, motor finance, property finance, and tax innovation, we’re closely monitoring these developments to provide the best financial products and advice for your needs.

The Bank of England has been working hard to control inflation by keeping interest rates higher. While inflation falling below target is positive news, it doesn’t necessarily mean that prices are decreasing—just that they are rising more slowly than before.

Recently, the BoE reduced the base rate to 5%, and today's inflation figures may increase the chances of further cuts. This is welcome news for those seeking property or motor finance, as potential interest rate reductions could make borrowing more affordable. If you're considering a business expansion or property investment, now might be the ideal time to secure financing through Approved Finance Group.

The Office for National Statistics (ONS) attributes the latest drop in inflation largely to falling fuel and air travel costs. However, food and non-alcoholic drink prices have increased, rising from 1.3% to 1.8%. On the other hand, "core inflation," which excludes volatile items like food and energy, has dropped from 3.6% to 3.2%, offering a more stable view of price trends.

Looking ahead, the Bank of England's next meeting on 7 November is expected to result in a further rate cut, potentially dropping the base rate from 5% to 4.75%. This is promising for borrowers, including those seeking business or property financing solutions, as lower rates often mean better lending conditions.

While declining interest rates benefit borrowers, they can also impact savers, as banks tend to lower savings rates in response to base rate cuts. However, our team at Approved Finance Group is here to help you explore tailored financial products that maximize your opportunities, whether you're a business looking for growth capital or an individual seeking motor or property finance.

In the coming months, inflation may increase again due to rising energy costs. Analysts are forecasting that the current rate could be the low point for 2024, with potential price increases driven by higher oil prices and possible adjustments in government duties in the upcoming budget.

At Approved Finance Group, we remain committed to offering expert advice and customised finance options, no matter the economic climate. Whether you need business financing to expand, motor finance to upgrade your fleet, or property finance for your next investment, we're here to support you.

How to Apply:

If you are a business that believes could benefit a business loan, speak to a member of our credit team today by calling 01908429888 or email us at info@approved-finance.co.uk. Alternatively, check your eligibility today and a member of our specialist finance team will be in contact as soon as possible.