'Grounds for cautious optimism': Surprise inflation fall is 'barely significant statistically', says ex-head of Treasury

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'Grounds for cautious optimism': Surprise inflation fall is 'barely significant statistically', says ex-head of Treasury
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Inflation falling is 'good news' but we 'shouldn't get too excited', former head of Treasury Lord Macpherson tells Andrew Marr

And as for mortgage rates, the expectation remains that they will continue to rise.

“And bear in mind that most mortgage holders are on fixed mortgages, which haven't been renewed for two, four, even five years. If those are coming up for renewal, your mortgage payments will be a lot higher than before.” And asked whether this was the end of cheap money, money borrowed at a low interest rate, Lord Macpherson said: “I think it is. I think central banks kept interest rates too low for too long, and over the last 18 months they've been playing catch up.

Mr Sunak said on Wednesday afternoon: "What we saw with the inflation figures is that our plan is working. I know things are difficult for people right now, but I'm determined to bring inflation down.

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