MorganAsh comments on latest CPI Inflation figures

15 November 2023

MorganAsh provides the MorganAsh Resilience System (MARS) to enable brokers, advisers and financial services firms to better manage and evaluate consumer vulnerability and comply with Consumer Duty.

Andrew Gething, managing director of MorganAsh, said: “Given that inflation has remained unchanged for the past couple of months, it’s really positive to see it return to its downward trajectory – and by quite some margin too. It is now at its lowest level for two years, thanks mostly to the lower Ofgem energy price cap. A stabilisation of food inflation will be welcome news for many, although households continue to face pressure at the petrol pump.

“While the government will be happy to have met its end of year target to halve inflation, we mustn’t lose sight of the fact that we are still a way off from the illusive 2% target. There’s no question that pressures remain, particularly for the most vulnerable of households. We must also consider the increased burden for those still set to remortgage in the near future onto a much higher rate.

“As is such, it’s incredibly worrying to hear that firms are still reporting few or even no vulnerable clients, despite the fact that everyone is vulnerable at some point in their lives. It’s for this reason, wealth management and stockbroking firms found themselves in the crosshairs of the FCA in its most recent Dear CEO letter. Identifying those facing difficultly simply isn’t possible without a robust and consistent approach to assessing and monitoring consumer vulnerability. Even as inflation improves, this must be a priority for all firms across financial services.

“Although a reduction in the base rate still feels some way off, it is hopeful that today’s news will influence the Bank of England to hold rates once again when the MPC meets next month. However, we must heed the warning that further rises are certainly not off the table, especially if the economy experiences any severe shocks.”