Just Mortgages comments on CPI Inflation

26 March 2025

John Phillips, CEO of Just Mortgages and Spicerhaart, said:

“Some good news on inflation will be welcomed by the Chancellor as she prepares to deliver her Spring Statement today. However, it looks like it could be just a blip as the government’s policy on national insurance and other tax hikes will soon filter into the equation. That’s on top of changes to energy prices and council tax also due soon, as well as any further geopolitical escalation we could see.

“Economists suggest September as the peak for inflation and remain confident that inflationary pressures will eventually subside and return to the 2% target. As we’ve seen though, predicting inflation can be a fool’s errand – particularly in this economic climate. All eyes will be on the MPC to see how it responds to this changing picture. While its gradual and careful approach is important and works to a point, we also need decisive action to safeguard the economy and support the key drivers of economic growth – such as the property market.

“Attention now turns to the Chancellor’s announcement at midday, with hopes that any potential spending cuts or further tax rises don’t end up fuelling inflationary pressures. We’ve already seen some positive news around additional funding for affordable housing – let’s hope she is able to squeeze in some support to enable more people to buy.”