Consumer Price Inflation UK - June 2026: Comment from LHV Bank on the fall in inflation rate

22 July 2026

Comment from Alex Beavis, Interim Director of Banking at LHV Bank:

“This fall in inflation is a surprise, and likely to be a temporary respite, given the forecasts for the rest of the year. Those inflation worries are being driven by the conflict in Iran, showing how events thousands of miles away can have a very real impact on the pounds in your pocket.

“Inflation is being targeted by the new Prime Minister and Chancellor, with measures such as scrapping VAT on electricity bills already announced, but it’s equally crucial for savers to be active in pursuing the best possible return on the money they set aside. Our recent research found that while the majority of savers check their balance regularly, and know exactly where it is being kept, more than half (53%) are not confident they are getting a competitive return. That rate uncertainty means savers are more likely to put up with accounts paying mediocre rates, leaving them worse off.

“By being an Active Saver, and comparing interest rates as often as you check your balance, you can ensure that no matter what happens with inflation, you are better off in the long run.”