Inflation is expected to rise due to energy costs, while SSD prices have dropped 15 to 30 percent in the last 60 days, according to recent reports.
The UK’s inflation rate remains above the Bank of England’s 2% target. Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, noted that the Bank of England is likely to delay a rate hike until after assessing the new Prime Minister’s fiscal measures. Rate-setters may want to assess the impact of any measures announced by the new Prime Minister before deciding whether to tighten policy again,
she said, adding that rising inflation could likely become a more notable economic headache
for Healey.
Yael Selfin, KPMG’s chief economist, highlighted that higher energy bills, driven by Ofgem’s price cap increases, will likely push inflation back upward. Although the impacts from the initial energy shock have so far been relatively limited, if energy prices remain high for longer, second-round effects risk feeding through into wages and more broadly across the economy,
she warned. Sarah Coles of AJ Bell added that while savings rates may rise, mortgage rates have surged, with miserable news for anyone in the market for a new mortgage.
SSD Price Cuts: A 15 to 30 Percent Drop
Meanwhile, the SSD market has seen dramatic price declines. According to reports, the price of SSDs has seen typical reductions of 15 to 30 percent in just the last 60 days. The WD Black SN770, for example, dropped from $89.99 to $59.99, a 33.3 percent reduction, offering 6 cents per GB after the cut. The biggest percentage price cuts have come on 1TB SSDs,
the report noted, with 17 out of 21 models surveyed seeing lower prices than they did on January 3rd.
For more on this story, see Malawi Inflation Hits Four-Year Low of 21.1% as Food Prices Ease in June.
High-end drives like the Samsung 990 Pro, the WD Black SN850X and the SK hynix Platinum P41 saw no price cut at all. The Crucial P5 Plus, for instance, dropped 32.3 percent to $131.99. The average price cut among the 19 drives in this category was 15.3 percent,
the report concluded.
Economic Implications: Inflation vs. Tech Affordability
The dual trends—rising inflation pressures and steep SSD discounts—highlight contrasting economic forces. While consumers may benefit from cheaper storage, the broader inflation outlook remains uncertain. Yael Selfin emphasized that energy prices could reignite inflation, stating, If energy prices remain high for longer, second-round effects risk feeding through into wages and more broadly across the economy.
What Comes Next: Inflation Fears and Tech Market Trends
The Bank of England’s next decision on interest rates will be critical. Sarah Coles of AJ Bell said the markets expect a single rate hike by the end of 2026, likely in September, with another possible in February. It means the most generous rates are likely to edge up,
she said, though mortgage rates have already surged, complicating the housing market.
For SSDs, the report warned that there's only so much that a memory manufacturer can do to limit output before they are losing money by maintaining idle production facilities.
Whether these trends will offset broader inflationary pressures remains unclear.
The interplay between inflation and tech affordability underscores the complex economic landscape. While some sectors see relief, others face rising costs, leaving consumers and policymakers to navigate a mixed economic outlook.
Keep reading
