Could we be seeing an end to the cost of living crisis?

A leading economist has suggested that the cost of living crisis could start to ease. The last few months have seen record rises in prices and increased demands for a reciprocal rise in salaries. With many struggling to feed the families And even heat their homes.

Anticipating the forthcoming data, a well-regarded economist suggests that inflation is poised to dip below wage growth, signaling a potential resolution to the cost of living predicament.

The economist's insights highlight a shift in the inflation landscape. Capital Economics predicts a decline from 7.9% to 6.5% in inflation between June and July, with these figures scheduled for release on the 16th of August.

Concurrently, Capital's projections indicate a rise in average earnings for the three months leading up to June, up to 7.4% from the prior 6.9% recorded in the May period. These precise figures are expected in September.

Capital economist Ashley Webb acknowledges that financial pressures will continue for many individuals. However, he underscores the significance of CPI inflation's trajectory dipping below the growth of average earnings, signaling the potential conclusion of the cost of living crisis.

This assessment emerges as the Bank of England persists in elevating interest rates, reaching 5.25% most recently.

In the financial arena, economists and markets are wagering on further increments, with market indicators pointing towards a pinnacle of 5.75% or slightly beyond.