Siobhan Mail, Director Seer Green Financial Planners said; “The likelihood of an increase in bank base rate is perhaps higher now than for almost a year because of the higher than expected inflation rates recently reported.

“However, the VAT and fuel duty rises scheduled for the new year will inevitably increase the price of goods and services to the consumer – further squeezing the household budgets for the majority.

“This, in itself, could potentially cause inflation to reduce as consumer spending is curbed. The danger of this is that this could potentially cause deflation which, in turn, could – if this effect is measured prior to any increase in bank base rate – cause interest rates to remain static for an even longer period.”

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