The UK's inflation rate has risen to 2.9% according to the latest Office for National Statistics (ONS) figures, pushing up household bills and mortgage costs. This is up from 2.5% in October and is the highest rate since 2012. The increase in inflation is largely due to higher energy prices and a weaker pound.
The Bank of England is expected to consider interest rate hikes to curb inflation, which could lead to higher mortgage rates for households. This could have a significant impact on mortgage holders and savers, with many facing increased costs. The FTSE 100 has also been affected by the rise in inflation, with the index falling by 1.2%.
For UK savers, the rise in inflation means that the value of their savings will be eroded over time. This could lead to a decrease in their purchasing power and a reduced standard of living. Mortgage holders will also face increased costs, with higher interest rates and mortgage repayments. The Bank of England is expected to make a decision on interest rates in the coming weeks, which will have a significant impact on the UK economy.