Four personal finance experts comment on CPI data

October 18, 2023

The CPI remains at 6.7%. Personal finance experts Andy Mielczarek (SmartSave), Mohsin Rashid (ZIPZERO), Lily Megson (My Pension Expert) and Jatin Ondhia (Shojin) share their thoughts on today's inflation data

Most people's savings are still losing value in real terms...

Andy Mielczarek, Founder and CEO of SmartSave, a Chetwood Financial company, said: 'The light at the end of the tunnel is still a long way away. Inflation is proving very sticky, remaining at a level that will keep many households on their toes.'

'Inflation does more to individuals’ finances than just increase the costs of their utilities and the weekly shop – prolonged periods of high inflation diminish the value of savings in real terms. Thankfully, we're in a position now where higher interest rates mean opportunities to achieve competitive returns on savings. But crucially, as many consumers will be acutely aware, not all banks have been passing better rates on to savings customers, essentially triggering a 'loyalty penalty' for savers who do not shop around.'

'As inflation and interest rates continue to shift, the onus is on consumers to consider where best to put their money to maximise returns. The gap between the best and worst savings products is vast, so anyone with a reasonable savings pot must assess which providers and products can help them grow it.'

Supermarkets' greedflation remains a real threat to shoppers...

Mohsin Rashid, CEO of ZIPZERO, said: 'The headlines are clear: inflation remains a huge issue. Every day goods continue to get more expensive at a fast rate, and today's data provided no silver lining. A dark cloud still hangs over people’s finances, with many struggling to afford even the most basic necessities like groceries as inflation remains sky high.'

'Those unable to fill their shopping trolleys or feed hungry mouths cannot wait years for inflation to crawl back to bearable levels – support is needed now. At least food inflation has slowed of late, but it’s still time for supermarkets to do away with ‘greedflation’ and start offering shoppers savings that truly help their pennies stretch further.'

'For the government, keeping a fair and watchful eye over prices is key to helping Britons get back on top of their finances. Today's figures underline that much more must be done.'

Government failing to support those in or planning for retirement...

Lily Megson, Policy Director at My Pension Expert, said: 'They say consistency is key, but this isn’t the case today. Over a year-and-a-half riddled with economic challenges and sticky inflation, the cost-of-living crisis has left households grappling with uncertainty.'

'We all know that there will be no quick fix to this. However, Britons would likely feel more confident if there was a strategy in place to help ease the financial burden – but this does not seem to have come to fruition. In fact, My Pension Expert's recent survey revealed that most (56%) UK adults believe the government lacks a clear strategy for improving outcomes for UK pension planners.'

'It is therefore vital that savers take advantage of all the support available to help them understand their financial situation and plan for the future. Guidance or even better, independent financial advice, could equip savers to navigate this challenging economic climate. Understanding that help is readily available, and that people don’t have to tackle financial uncertainty alone, is vital.'

No room for complacency; people must diversify their savings and investments...

Jatin Ondhia, CEO of Shojin, said: 'As inflation had been falling, and the Bank of England paused on its base rate hikes, there had been a sense of cautious optimism returning – a sense that we may have turned a corner after two years of economic turbulence. Today's data will dent that confidence.'

'Clearly, there is a long way to go to properly stabilise the economy and financial markets. So, prudence must remain the guiding principle for investors and, to that end, diversification continues to be a likely strategy for many, serving as a safeguard against market volatility. Indeed, investors must continue to be proactive, exploring all the different options available to them.'

'It is still difficult to say where inflation and interest rates will go in the medium to long term. People must maintain control over their financial decisions, ensuring that each decision – whether for their savings or investments – aligns with their own risk tolerance and long-term financial goals.'