Why this month's inflation figure matters for you

Published On Oct 16, 2024, 5:12 AM

The UK inflation rate is currently at 1.7%, which affects benefit payments, including universal credit, that are typically adjusted in line with inflation. Although some benefits are set to see modest increases due to this low inflation figure, significant changes in energy bills could lead to a rise in inflation next month. The state pension will increase based on a higher earnings growth figure of 4.1%, while further interest rate cuts by the Bank of England are anticipated, likely leading to cheaper borrowing costs but lower returns for savers. The upcoming budget from the Labour government may also propose tax rises and spending cuts.