ARCHIVED ARTICLE This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Image of Rachel Springall

Rachel Springall

Finance Expert & Press Officer
Published: 19/07/2023
A pile of pound coins and bank notes

News contents

The latest drop sees UK inflation fall to the lowest annual rate since March 2022.

UK inflation, the measure of how prices are increasing, fell to 7.9% in the year to June, according to the latest announcement from the Office for National Statistics (ONS). This is in contrast to last month when inflation rose at a higher rate of 8.7% in the 12 months to May.

While inflation dropped, this doesn’t mean the prices of goods and services are getting any cheaper. Instead, it shows prices are rising at a slower rate.

Falling fuel prices were partly responsible for slowing inflation, according to Grant Fitzner, Chief Economist at the ONS. Fitzner added that food inflation also eased in June but still “remains at very high levels”.

What is inflation?

Inflation is used to measure the rate at which prices are rising. You can read more about inflation and how it affects your personal finances in our guide.

What does this mean for your savings?

Inflation impact should not discourage savers from searching and switching to a better deal, as if they fail to do so, they could miss out on an attractive rate.

Top rates across the savings spectrum have improved since the last inflation announcement and more improvements may well surface in the coming weeks if providers consider the latest base rate rise and volatility surrounding future interest rate expectations. The savings market overall has come a long way from the record low returns seen in 2021.

The one year fixed bond arena takes centre stage for rate volatility as providers have been keen to increase their rates to grab a prominent position in the top rate tables. Several providers now offer 6% to savers who are prepared to lock their money away for at least one year.

Those savers who have a maturing one-year fixed bond may well realise the rates are more than double the top rates offered a year ago. This area of the market is brimming with challenger banks, and they traditionally move quickly to attract deposits to fund their future lending. Savers will have to move quickly to grab a top rate from such a volatile market.

Two years ago, the top rate easy access accounts paid just 0.50%, but there are now a variety of deals that pay more than 4%. These accounts may be more suited to those savers who want flexibility and peace of mind that they can gain access to their cash quickly.

However, it’s vital consumers carefully check the terms and conditions of every account, as some can restrict withdrawals. The ISA equivalents are also improving, which is ideal for those who want to use their ISA allowance.

Savers will need to consider both their short-term needs and long-term goals when comparing the variety of accounts on the market. It is imperative they sign up to rate alerts and newsletters to keep on top of the latest changes to surface and move quickly to secure a deal to not be left disappointed.

Compare savings rates

You can compare savings rates using our easy access, fixed bonds and ISA charts. Alternatively, stay up to date on the best savings rates available by reading our weekly savings and ISA roundups.


Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice. will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be ScamSmart. will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be ScamSmart.