MorganAsh comments on latest UK inflation figures
20 December 2023
Following the release of the latest ONS consumer price inflation figures, which shows UK inflation fall to 3.9%, here is a comment from MorganAsh.
MorganAsh provides the MorganAsh Resilience System (MARS) to enable brokers, advisers and financial services firms to better manage and evaluate consumer vulnerability and comply with Consumer Duty.
Andrew Gething, managing director of MorganAsh, said: “The significant drop in inflation last month was a result of the lower energy price cap coming out in the wash. While greater than initially predicted, today’s news of a more subtle drop is somewhat akin to the gradual improvements economists expect to see moving forward. Nonetheless, this is more positive news, especially as it is driven by the easing of food costs and petrol prices – two key pressures for the general public.
“Of course, the Bank of England will continue to play Scrooge and remind everyone we are not out of the woods just yet, with inflation still high and some way off the illusive 2% target. They may even have one eye on next month’s figures and any potential impact of both Christmas shopping and seasonal spending. As a result, any predictions for an early base rate drop in 2024 may need to be re-evaluated – especially as three MPC members voted for a rise just last week.
“The 2% target is still likely to be some way off, keeping pressure on the most vulnerable of households. With a worrying number of firms unable to identify how many vulnerable clients they currently have, it comes as no great surprise to see that the FCA is set to review firm’s vulnerability management in January, as part of its ongoing enforcement of Consumer Duty.
“The regulation requires all firms to assess clients and ensure they are receiving good outcomes. Building a complete picture of the customer base and identifying those in difficulty just isn’t possible though without the necessary data and a consistent approach to monitoring consumer vulnerability.”
