Energy price cap goes up on 1 January and Bank of England will make three interest rate decisions by end of April
At the start of 2026, it seems the financial picture is finely balanced. Inflation has come down from its latest peak, mortgage rates have started falling and changes announced in the budget should take some money off energy bills from April.
But the price of housing, groceries and energy remain far higher than pre-pandemic, and there are some changes coming that will make aspects of life more expensive.
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