Kevin Brown, savings expert at Scottish Friendly, has commented on this morning's inflation data from the ONS

August's inflation reading is a welcome surprise, given that the data was expected to show another increase in prices. However, inflation remains high, and the cumulative effect of price rises over the past few years mean household budgets remain stretched.

But while inflation is no longer rising, it doesn’t make another rate cut any likelier this year. The Monetary Policy Committee has been insistent that it will proceed cautiously on future rate cuts, with policymakers wary of another price spiral if they move too soon.
"Realistically, we won’t see the next cut until March or April next year now, which will come as a blow to borrowers holding out for a further reduction in borrowing costs before switching to a new mortgage rate.

For savers, the challenge remains the same. Even flat inflation eats away at the value of cash, and with savings rates softening, it is vital they shop around for the best rates or consider long-term investments that offer the potential for stronger returns and better protection against inflation.

That is particularly salient when saving towards a nest egg for your children through tax-efficient products like Junior ISAs.