This jolt in inflation is a timely reminder that there’s still a great deal of work to do to restore economic stability.
While April’s wave of tax and bill hikes was expected to drive prices up, it doesn’t make the impact on household finances any less of a sting.
With households already feeling stretched, the combination of steeper costs and renewed inflation pressures will make it even harder to prioritise saving.
Inflation hikes have been the persistent thorn in the side of financial planning for years now, repeatedly knocking long-term goals, like retirement, off course. And whilst the government is trying to take steps to drive better financial outcomes via the reallocation of pension investments, savers need to know exactly what these changes mean for them and their money. With clarity, will come public confidence.
Government, financial services and employers all have a role to play in delivering this – for example, by improving access to financial education and advice. A joined-up approach is essential to help people build financial understanding and make confident, informed decisions – especially in uncertain times.
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