Just Mortgages comments on CPI Inflation figures

18 June 2025

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

“Inflation holding firm in May feels like a rebalancing after April’s figures reflected the likes of Easter air fares and many one-off factors, while higher costs at the supermarket and on other household goods in May prevented any chance of making positive progress. While stability is good, I still wouldn’t be planning my rate cutting party for tomorrow’s MPC decision as the central bank is likely to keep to its careful and gradual approach. That is also true given fresh escalation in the Middle East which is likely to cause volatility – particularly when it comes to oil prices – and push costs higher.

“Away from geopolitical tensions, there are some positives on the horizon for inflation – most notably the 7% cut to the energy price cap in July – which will have a positive influence on inflation. Alongside its own predictions on inflation, the central bank will be paying close attention to a rise in unemployment and an economy that is shrinking. This will no doubt play into its decision making and will encourage some movement on the base rate. Improving swaps will create opportunities for lenders, which will be welcome for potential borrowers.

“Even so, what is encouraging for us is that clients are still coming through the door in good numbers, whether it’s for valuation requests, buyer registrations or mortgage appointments. Key to this is the proactive approach of advisers to answer the appetite in the market and demonstrate the opportunities already available for borrowers at every stage of life.”