Scottish Friendly responds to inflation figures

Following the release of UK inflation figures by the ONS, Calum Bennie, savings expert at Scottish Friendly, commented on the potential impact for consumers:
“With inflation edging up slightly to 0.1% in July, and the economy currently set on path of solid recovery, the prospect for a rise in interest rates is a real one. Even though we may see the UK inflation rate hovering around this mark for some months to come, a rise cannot be ruled out, especially given the scope for a shock to the system such as a sharp recovery in the oil price.
“Encouragingly for consumers, our most recent disposable income survey has shown that people have had a year-on-year rise in their disposable income of 1.5 percentage points. Provided interest rates do not go up by the year end, inflation remaining near zero will put a few more pounds into people’s pockets.
“Rail fares have risen 25% since 2010 compared to the average pay rise of just 9%, so commuters will welcome the news that RPI was at 1% in July because regulated fares will be kept in line with this figure from January. This is considerably below the 2.5% inflation rate of last July, which impacted on rail passengers this January, and it means come 2016 there will be a further boost to spending power which could perpetuate low, or even zero, inflation.
“Good news as it is, we mustn’t forget Britain has the highest rail fares in Europe so people should look at all the ways they can save money on rail fares. Travelling to work from a station in a cheaper fare-zone, using the best-value rail card, or travelling to work at off-peak times can all help to make you quids in.”