Mortgages help push inflation down

Falling repayments on mortgages have helped to push down retail prices index inflation, the Office for National Statistics (ONS) has revealed.

The figure dropped to -0.4 per cent in March, the first time it has reached a negative level since 1960.

Recent Bank of England base rate cuts have resulted in home loans repayments being reduced, particularly for those on tracker mortgages.

The ONS also stated that consumer prices index inflation – which takes items such as household services into its calculations ñ fell to 2.9 per cent last month, down from 3.2 per cent in February.

Transport and fuel costs, as well as declining gas bills, had an effect on this, the ONS noted.

Commenting on the report, the Alliance Trust claimed that elderly people – who may not benefit from lower mortgage repayments as much as other groups ñ face higher rates of inflation than younger generations.

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