The unanticipated fall of inflation in the UK could mark a positive step away from the cost of living crisis that has plagued the economy in recent years.
It’s news that will go some way in easing fears for consumers who have endured a challenging economic period for some time, with rising costs affecting a range of commodities and services as well as accommodation.
Andy Mielczarek, Founder and CEO of SmartSave, a Chetwood Financial company, detailed his belief that ‘any drop in the rate of inflation is welcome news, and many Britons might be feeling a sense of relief that the worst of the cost-of-living crisis could finally be behind us’.
The changes could be felt in the way UK consumers change their savings strategy according to Mielczarek, who revealed the importance of an effective strategy for those looking to make meaningful financial decisions.
He added: “As consumers feel the pinch on their budgets loosen, they should take advantage of the opportunity to consider revamping their savings strategy. In particular, those holding significant sums in easy-access high-street savings accounts, many of which continue to offer paltry rates, could end up missing out on better returns in the months to come.
“The onus is on savers to search carefully for the right product and provider. For instance, as inflation continues to fall, those feeling more confident about setting money aside in a fixed-term savings account are likely to achieve better returns than those in easy-access or current accounts. And looking beyond the high street remains crucial when shopping around for the most competitive rates.”
It continues what has been a significant month for the payments sector and the economy, as a raft of key political moments have shaped the sector. Furthermore, the Autumn statement from a recently reshuffled government is also set to be a key moment for the industry.
Recent cabinet appointments suggest that Rishi Sunak will continue to focus on tech and digital finance within his new cabinet. He confirmed the appointment of Bim Afolami as the UK’s new Economic Secretary to the Treasury.
The new Economic Secretary – a title often referred to as City Minister – will now preside over the rules and regulations of the UK banking and financial sectors with many still ongoing from Griffith’s tenure.
Jatin Ondhia, CEO of Shojin, commented on recent developments: “November is shaping up to be a significant month, with inflation falling, a new-look cabinet, and an incoming Autumn Statement — this is a pivotal moment for people to reassess how they are managing their finances and consider how to best supercharge their savings and investments.
“Even as inflation falls, investors cannot afford to be passive; in this environment, it is important to scrutinise your portfolio and explore every available option, considering both traditional and alternative assets.
“The political and economic landscape has shifted once again this past month, and investors’ risk tolerance and long-term financial goals may need to recalibrate too. What’s more, all eyes will now turn to Jeremy Hunt and next week’s Autumn Statement.
“Falling inflation is a boost to the Chancellor, and it will be intriguing to see what he pulls out of the famous red briefcase in the way of impactful policies aimed at fostering growth and galvanising the investment landscape – investors will certainly need to take note.”