Phoebus comment on inflation

16 September 2026

Richard Pike, sales and marketing director at Phoebus Software:

“Today’s inflation figures are a reminder that the UK’s battle with rising prices is not over, with CPI increasing to 3.1%, from 2.9%. The bigger headache for the MPC tomorrow, though, isn’t the August figure but what comes next. With Brent crude now well above $100 a barrel and tensions in the Middle East intensifying, there could be significant pressure on energy and fuel costs over the coming months. With winter approaching, that could put another squeeze on household budgets, adding to affordability pressures at a time when many borrowers are already facing higher mortgage costs.

With inflation moving further above the Bank of England’s 2% target, the prospect of interest rates staying higher for longer will remain a concern for borrowers.

For the mortgage market, that pressure will be particularly relevant for those coming to the end of fixed-rate deals. As borrowers refinance in a higher-cost environment, lenders will need to be prepared for increasingly varied customer circumstances and affordability pressures.

“The key challenge now is maintaining flexibility. Lenders need to be able to respond quickly as inflation, interest rates and borrower behaviour shift, rather than relying on a one-size-fits-all approach.”