16-01-2008
Fool outlines risk of inflation
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Fool.co.uk has issued a warning over the presence of inflation in the UK economy.
David Kuo, the head of personal finance at Fool.co.uk, has highlighted data from a recent poll among the site's readership base, which suggests the UK's inflation levels may be somewhat higher than official data suggests.
Moreover, the organisation believes that homebuyers should consider the presence of inflation, given that interest rates will once again return along their upward trajectory once the current credit crunch has abated.
"We are slowly beginning to see that these inflation figures are feeding through, it's almost as though people are a better barometer of what the inflation rate is than the government's own Office for National Statistics," said Mr Kuo.
To those homebuyers who are able to obtain a competitive rate of interest on a mortgage, Mr Kuo believes a further few percentage points should be added, in an effort to determine how affordable the loan might be should interest rates rise again.
According to the Bank of England, inflation is currently at a rate of 2.1 per cent.