The prices of mortgage fees are contributing to an economic situation which could see the UK go into negative inflation next year, Defaqto says.
According to the Confederation of British Industry, inflation rates are set to peak at 4.8 per cent this quarter. However, it is predicted that they will fall over 2009 thanks to the weakened British economy.
The price of mortgage arrangement costs, household bills and many food and non-alcoholic drinks have all put pressure on the rates of inflation.
Michael Baxter, an economist at Defaqto, said: "I think inflation is quite close to peaking, in fact I think if anything there is a genuine chance of negative inflation in a couple of years' time."
Interest rates in the UK are set by the Bank of England in an attempt to make sure that inflation is not too high and to keep the British economy stable.
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