Kevin Brown, savings specialist at Scottish Friendly, comments on this morning's inflation data from the ONS

Many households will welcome this morning’s inflation figure of 3%, as it suggests December’s uptick was not the start of a renewed trend upwards.

It seems now the journey back towards the Bank of England’s 2% target has regained momentum. That matters not only for policymakers considering rate cuts, but for households whose financial planning depends on the direction of prices.

The key point, however, is that inflation easing is not the same as inflation disappearing. Even at 3%, prices are still rising meaningfully year on year. Compounded over time, that continues to shape the real value of savings.

 For borrowers, this strengthens the case for the Bank of England’s Monetary Policy Committee to trim rates in March. For savers, the picture becomes more nuanced. As inflation falls, interest rates are also likely to continue to ease, which could narrow the window for locking in attractive cash returns.

Cash provides stability and plays an essential role in short-term planning. But when inflation is persistent, preserving purchasing power over the long term may require looking beyond cash alone. Considering investing can be one way to potentially help savings keep working over time, rather than gradually losing ground.