Commenting on the latest inflation figures, Charlotte Kennedy, Chartered Financial Planner at Rathbones, one of the UK’s leading wealth and asset management groups, says: “The conflict in Iran, and the resulting surge in energy prices, means the latest inflation figures are already out of date when it comes to where prices are heading next.
“The latest reading shows that slower rises in petrol and diesel prices had been helping to keep inflation in check. But that trend has now gone into reverse. Rising tensions in the Middle East are driving up oil prices, and that’s beginning to feed through to forecourts. If sustained, the impact won’t stop there. Oil is a key input across the economy, so higher prices could ripple through supply chains - pushing up the cost of producing and transporting goods, including everyday essentials like food.
“It’s also important to remember that when inflation holds steady, it doesn’t mean prices aren’t rising, it simply means they’re increasing at the same rate as before. And with inflation expected to tick up in the near term, while interest rate cuts remain on hold, households may need to stay on the front foot. That could mean revisiting budgets, prioritising essential spending, and checking that savings plans remain resilient in the face of persistent cost pressures.”
