Adam Oldfield, chief revenue officer at Phoebus, says:

We’re waking up to good news, at last.  Inflation falling into single figures is the news that we’ve all been hoping to hear and perhaps the start of things to come.

“Although it is the fall in fuel prices that is the major contributor to the current rate of inflation, we can’t underestimate the effect the fuel and energy prices have across the economy.

“If everyone is paying less for their fuel then the prices we pay for other goods and services should start to come down.  This virtuous circle is what we need to keep inflation going in the downward direction that the Bank of England is tasked with achieving.

“Of course, there is no guarantee that this will be enough to prevent the BoE from raising interest rates again next month.  However, the IMF has upgraded its forecast for the UK economy, which is a factor that usually has some bearing”.

“The housing market is showing huge resilience recently and the general sentiment appears to be positive.  The only fly in the ointment will be another interest rate rise. How lenders manage that, if they can see that inflation is going in the right direction, will be key.”