“The gap between the current 4.6 percent rate and the Bank of England’s target of two percent is likely to prove tougher to close, because the Bank of England will need to contend with domestically-fuelled inflation through things like higher wages, which is a tougher nut to crack.”

She pointed again to OBR figures with inflation set to average at 3.6 percent in 2024, which is not much less than the current level, at 3.9 percent for the year to November.

Ms Coles warned as the two percent target will likely not be reached until 2025, interest rates will have to stay higher for longer.

She also said: “Falling inflation and rising wages sadly won’t mean the cost-of-living crisis is over. Wage rises still have an awfully long way to go to make up for the spending power we’ve lost over the past couple of years, and they have slowed significantly in recent months.”

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