Food and 9 other things likely to be more expensive this year despite inflation fall
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After a tough few months watching inflation figures rise, news of a drop to 2.5% came as a welcomed relief for people and businesses. However, some rising bills are still set to carry on strong despite this news. This is largely powered by a string of tax changes due in April and uncertainty around the Bank of England’s next interest rate move. A change in US government due next Monday as Donald Trump is inaugurated for his second term and some proposals made by his administration have seen global markets preparing their defences, with consumers paying the price.
Experts at Sky News noted that there are 10 specific areas that are likely to see continuously rising prices over the next few months despite the new inflation figures. Starting with a tax rise likely to hit a number of industries. Since the October budget, business experts across a number of sectors have warned the increased employer national insurance rates starting in April will likely see products and services with a jump in overhead costs due to their employees passing on this rise to their consumers.
With a bit more specificity, food prices are likely to see some continuous price rises, due to the national insurance change as well as other tax and industry changes hitting supermarkets. The British Retail Consortium estimates this to reach an annual increase rate of 4.3% by the end of 2025.
The financial markets are currently fluctuating still from the recent inflation news but the experts predict 2025 will bring more elevated mortgage rates. Uncertainty around just how much more homeowners could be looking to spend may rely on the Bank of England’s base rate decisions in coming months.
