UK Inflation Remained at 4.6% in October 2023: The Concern Regarding the Economy Continues

UK Inflation Remained at 4.6% in October 2023: The Concern Regarding the Economy Continues

Updated: 14 December 2023

According to the latest Office for National Statistics data, the UK’s inflation remained at 4.6% in October 2023. It showed a decrease of 6.7% compared to September. Despite the decline in the main rate in the UK, the impact of this decrease is relatively insignificant.

Britain’s inflation rate is higher than that of the United States or the Eurozone. In recent years, British citizens have experienced a rapid increase in prices at the supermarket and other household bills, leaving them uncertain about when they will see a decrease in inflation rates.

Regardless of any potential stabilization in energy prices, there is a growing concern regarding inflation and the economy in the UK. According to Statista, the UK faced tremendous difficulty between September 2022 and March 2023, with seven months of double-digit inflation. In May 2023, the International Monetary Fund advised against celebrating the significant decrease in the UK’s primary inflation rate.

In a move widely anticipated by market experts, the Bank of England decided to maintain its Bank Rate at 5.25% on 2 November 2023. The rate was also kept in the previous announcement made in September 2023. After experiencing 14 consecutive increases from December 2021 to August 2023, the Bank’s latest decision supports that the peak of the rate-rise cycle was reached.

Average Electricity Usage is Expected to Rise by 5% in the UK

Another concern for the UK is the energy bills for 2023. As winter approaches, UK households are bracing themselves for an increase in their annual energy bills come January. This is the time of year when people prioritize staying warm during the coldest months. According to recent data, there is an anticipated 5% increase in the average electricity consumption of households in the UK, resulting in a projected cost of £1,928 for January 2024. 

In November 2023, residents in some regions of the UK experienced their chilliest November night since 2010. In the town of Prestwick, located in Ayrshire, the overnight temperature plummeted to -5.5C (22F), while in Keswick, a town in Cumbria, it dropped to -6.1C (21F).

Sadiq Khan, Mayor of London, has implemented a protocol to address the severe weather conditions in London. This initiative aims to safeguard rough sleepers as temperatures are anticipated to reach below freezing at night.

Property Price in Portugal is Lower by 117% than in the UK

Residency is another critical factor among the top reasons for UK citizens moving to Europe. Portugal, for example, has become a highly appealing destination for UK investors due to its excellent quality of life, attractive fiscal advantages, and flourishing real estate market. 

Based on data provided by Property Market Index, the average price of a four-bedroom property in Portugal is €300,000. This property’s price is less than half of what comparable property in the UK sells for, resulting in a significant difference of 117%. Considering the current inflation figures and the anticipated conditions in the UK, it is understandable that a significant number of UK citizens are showing a strong interest in the Portugal Golden Visa or D7 Visa program

Interest in houses in Portugal among Brits has reached its highest point in the past decade. According to Get Golden Visa, the UK has a significant interest in the Portuguese property market. Amidst the challenges posed by rising inflation rates in the UK, expats and investors are turning to the Portugal Golden Visa and D7 Visa options as a promising pathway to Portuguese residency.

As for Amanda Collison, from Property Market-Index:

“The Portuguese luxury property market shows no signs of dwindling, with one of the main drivers being high interest from international investors and affluent expats buying property in Portugal for both lifestyle, pleasure and investment”.

David Vacani, chairman of The Federation of European Independent Financial Advisors, states:

“Portugal stands as a beacon of stability and opportunity for wealthy UK citizens seeking a better life in Portugal with great tax, investment, and real estate opportunities to explore.”

259% Volume Increase in Greek Golden Visa Application

Not just Portugal, for example, based on data from Insee, it has been found that there are approximately 86,000 properties in France that British individuals own.

According to Investment Migration Insider, the Greek Golden Visa application volume increased by 259% in Q1 2023. Get Golden Visa reports that there is a huge demand for Greece’s ‘Golden Visas’ among British people.

The Bank of England predicts that the Consumer Price Index (CPI) inflation rate will average 4.6% in the fourth quarter of 2023 before falling to 3.1% in the fourth quarter of 2024. Meanwhile, according to European Union predictions, Portugal’s annual average inflation rate is predicted to fall to 3.2% in 2024.

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