Just Mortgages comments on CPI inflation

21 May 2025

John Phillips, CEO of Just Mortgages and Spicerhaart, said:

“A rise in inflation was hardly a shock given the fact that April marks the start of the new financial year and brought with it wave of inflationary price hikes – most notably to energy and water bills and as businesses pass on both the rise in national insurance contributions and in the minimum wage.

“The big question is how will this impact the future path of interest rates. What we do know is the central bank has been clear it expected this rise in inflation and knows full well it is likely to creep up further before eventually coming down. The real elephant in the room is the impact of Trump’s tariffs on global economies and international trade which is still unknown. With plenty of uncertainty, it’s likely we could see a pause in June before returning to cuts later in the year.

“Base rate strategy has long been a tug of war between managing inflation and stimulating economic growth. While inflation has risen and is expected to increase, it does feel like the overall momentum is still shifting towards stimulating growth – particularly with the threat of economic uncertainty on the global stage. Borrowers are seizing the opportunities available to them now with significant rate reductions across the market and increasing innovation. Brokers remain busy as an ever-changing market continues to demonstrate the value they can offer in navigating options and securing the best possible deal.”