UK inflation 'higher than expected' in December - Stockport financial experts share their insight

UK inflation hit 3.4% in December 2025, surpassing the government’s 2% target, which could complicate borrowing and the housing market. This unexpected rise might mean the Bank of England won’t cut interest rates soon, keeping mortgage rates higher for longer. It’s crucial for homeowners and prospective buyers to keep affordability in mind.

For anyone looking to take on new debt, it’s advisable to stress-test finances against the likelihood of elevated interest rates into 2026. Savers should also reconsider their strategies, as cash can lose value over time.

Despite the inflation uptick, it’s not a cause for panic. Thoughtful financial planning and budgeting are key to maintaining resilience during such periods. If you’re feeling uncertain and want some guidance, Beech Tree Financial Advice in Stockport offers free initial consultations. They’re ready to help you navigate these economic waters, just reach out through their website or pop into their office in Heaton Chapel.

Read the full article at Stockport Nub News