Responding to the latest inflation figures from the Office for National Statistics, Jon Tabbush, Senior Researcher at Centre for London said:

“The unexpectedly large fall in today’s figures will give policymakers hope for relief, after the UK has suffered from the most persistent inflation of any G7 economy. Food and drink prices falling by a full percentage point will give struggling families some much needed breathing space. Nevertheless, the fact that core inflation (which excludes food and energy prices) has only fallen by 0.2 points means we’re not out of the woods yet.

This month’s decrease is, in large part, the result of falling prices for petrol. Over 40% of London households don’t have access to a car, rising to nearly 60% in inner London, so many residents won’t feel much better off.

With interest rates likely to keep rising, renters, who are disproportionately likely to live in London, are also suffering with double digit rent rises for new lets, as high borrowing costs are passed on by their landlords. Recent homebuyers in the capital will be hardest hit of any in the UK by climbing mortgage costs – particularly if they used Help to Buy or using Shared Ownership schemes.

Any government strategy to support those struggling to make ends meet has to recognise these regional differences, and target help at those on the lowest incomes after housing costs. Government should re-link Local Housing Allowance to the 30th percentile as soon as possible, to stop renters being evicted from their homes during this crisis, and help homeowners transition to interest-only mortgages where necessary.”