Household costs eased in March

Household costs eased to 4.4% in the year to March, from an annual rate of 5.3% at the start of the year, according to official data from the Office for National Statistics (ONS).

Those with home loans had the highest annual inflation rate of 5.5%, reflecting rising mortgage interest payments.

The report says mortgage interest payments jumped 36.1% in the year to March, while electricity, gas and other fuel prices fell by 18.3%.    

Household inflation for private tenants was higher than social renters over the period, at 4.6% and 4.3%, respectively, following a period between October 2023 and January 2024, where the two groups had similar inflation rates.   However, a year ago household inflation for private renters ran at 10%, while social renter’s costs stood at 13.1%.  

The ONS says “Those groups who spent a higher proportion of their basket on mortgage interest payments saw higher annual household cost inflation rates than those who spent a greater proportion on household energy bills.   

“As a result, higher annual inflation rates were experienced by non-retired households and mortgagor households, while outright owner occupiers had the lowest rate across tenure types.”