Industry figures hail a period of more stable inflation but high property costs mean many owner occupiers are still suffering as monthly premiums stay high.
Official figures show inflation is holding steady at 2% year-on-year.
The Government’s latest bulletin for June (see main image) reveals that the Consumer Prices Index increased by 2% during the past 12 months and is at the same level as May.
The main drivers for the steadying inflation figure include downward price pressure on footwear and clothing, while hotel and restaurant prices went up correspondingly.
But the CPI does not include housing costs such as council tax and the corresponding CPIH, which does includes these costs, rose by 2.8% during the 12 months to June, pushed up by a 6.8% rise in property costs (but not mortgage payments which are included in the Retial Price Index) during the period.
And housing costs are at a historical high – the last time it hit this figure was back in 1992 when interest rates hikes mortgages rates up to double digits.
