Weekly Round-Up: 23rd April

📈 Inflation is up

Figures released this week showed prices are rising at a faster rate again, with inflation up to around 3.3%. That’s being driven mainly by higher fuel and food costs.

Why it matters:
When inflation rises, your money buys less. Even if your income stays the same, your real spending power falls.

What you can do:
Review your budget and look for areas to cut back. If you have savings, check whether your interest rate is high enough to keep up with inflation.

⛽ Energy and fuel costs surge

Petrol and diesel prices have increased quickly due to higher global oil prices. This is also pushing up delivery and production costs across the economy.

Why it matters:
Higher fuel costs don’t just affect drivers – they feed into food prices, travel, and household bills.

What you can do:
Consider small savings like reducing unnecessary travel, comparing energy providers, and improving energy efficiency at home where possible.

🏦 Interest rates unlikely to fall soon

The Bank of England held rates at 3.75% at its last meeting, but expectations of cuts this year are fading. In fact, there’s a chance they could rise further if inflation worsens.

Why it matters:
Borrowing stays expensive, especially for mortgages and loans. On the upside, savings accounts may continue offering better returns.

What you can do:
If you have debt, review your interest rates and consider fixing if possible. If you’re a saver, shop around for the best rates rather than sticking with your current bank.

🏠 Mortgage pressure and housing slowdown

Higher borrowing costs are making mortgages more expensive and slowing demand in the housing market.

Why it matters:
If you’re coming off a fixed deal, or looking to buy your first home, higher rates are bad news. Some lenders have started cutting mortgage rates again in hopes of a Middle East peace deal, but rates still remain much higher than before recent global tensions, and things are very changeable. That makes it hard to know what to do.

What you can do:
If your mortgage deal is ending soon, start comparing all your options. Find out how good your credit score is and work on improving it if you can as it could open up a better rate to you. Speak to a broker who could help you find the best possible deal.

🏡 London’s housing market weakens – while other areas prosper

House prices are falling sharply in parts of London, with some areas down over 10%. However, other parts of the UK are still seeing modest growth.

Why it matters:
The market is becoming more uneven, meaning location matters now more than ever.

What you can do
If you’re buying, focus less on national headlines and more on local trends (prices, demand, and time-on-the-market in your specific area). If you’re selling, be realistic on pricing. In a market that is split like this, overpricing is more likely to lead to delays than higher offers.

📉 Confidence drops across the economy

Households are feeling more negative about the economy, with confidence levels near record lows.

Why it matters:
When people spend less, businesses earn less — which can slow economic growth and affect jobs and wages.

What you can do:
Build an emergency fund if you can, even a small one. Having a financial buffer can help you feel more secure during uncertain times.