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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Martin Lewis warns prices are unlikely to get cheaper - even if inflation keeps falling

Martin Lewis has warned prices may not come down even if inflation continues to drop.

Inflation is a measure of how the price of goods and services are changing and is currently at 10.1%.

This is down from a 41-year-high of 11.1% but is still far off the Bank of England target of 2% inflation.

Crucially as well, inflation falling does not mean prices are no longer rising - it just means they are going up less harshly than before.

Speaking to The Sun, Martin said: "Inflation dropping does not mean prices dropping. It means prices won’t go up as quickly as they have been.

"It’s a bit like the difference between a car’s overall speed and its acceleration. If you slow the acceleration down, the car is still getting faster.

Martin Lewis has been considered the voice of the people during the current cost of living crisis (Ken McKay/ITV/REX/Shutterstock)

"I don’t think prices are ever going to go back to where they were. If they did, that would cause a problem for the economy as we would get something called deflation."

Martin also answered some of the biggest money questions millions in the UK currently have and has warned that things may not start looking brighter too soon.

From April, millions are to see their bills increase with council tax, energy bills, broadband, and water, to name a few, all set to rise due to high inflation.

If you’re out of contract, Martin recommended looking for a cheaper deal elsewhere, then either haggle your current provider down or switch to that better deal.

On the current cost of groceries and food, which currently has an inflation rate of 17.6%, the Money Saving Expert said that prices looked like they were going to remain high for the foreseeable.

On energy bills, the Money Saving Expert said he was "pleased" that Chancellor Jeremy Hunt had listened to his call to keep the Energy Price Guarantee at £2,500 until July.

He said: "I was delighted that he wrote back to me on the morning of the Budget to say he had accepted the arguments and they were not going to increase prices."

However, due to the £400 energy discount ending this month, many were still going to struggling with their payments as they are "paying double what they paid in the past."

Although, Martin noted that it was "almost certain" that energy bills will drop in July due to the drop in wholesale gas prices.

He said: "That means the clouds are parting and we can see the sun through them, and maybe the rain is a little bit lighter than it was."

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