UK inflation hitting mortgage holders and families hardest

The news: Official data published Monday shows UK households with mortgages felt the impact of high inflation more strongly than any other household group during September.

The numbers: Annual household cost inflation for UK mortgage holders hit 9.3% in the year to September, the highest of any socio-economic group. For the same period, the household costs index (HCI) rose 8.2% and consumer price inflation (CPI) sat at 6.7%. Households with children experienced a higher annual inflation rate of 8.4%, 0.3% higher than those without children.

The context: The Office for National Statistics (ONS) said the high rates for mortgage holders is largely the result of higher mortgage interest payments, which have increased in line with the Bank of England’s Bank Rate (currently sits at 5.25%, compared to 0% two years ago). Homeowners experienced an inflation rate of 7.4%, while renters experienced a rate 2.1 percentage points lower than mortgage holders.