Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Consumer price inflation continues to slide

Consumer price inflation continues to slide

Consumer price inflation (CPI) continued its nine month slide in March falling from 1.7% to 1.6% over the month, the lowest figure since 2009.

The steady falls have come as some pricing power returned to workers, with wage inflation finally beginning to restore some of the consumer spending power which has been eroded since 2008.

The most recent wage data, for January, showed earned income rising at 1.7%, and is likely to have continued to strengthen since.

‘At last, the outlook for real wages has begun to brighten,’ said Paul Ashworth of Capital Economics.

‘Rising real pay should dispel fears both that the recovery may soon fizzle out and more deep-seated concerns that the link between economic growth and rising living standards has been severed.’

The rate of inflation has consistently undershot the Bank of England’s 2% inflation target since the end of last year.  Producer price inflation of 0.5% showed weak pressure across the supply chain.  

‘If anything, deflation could [now] be more of a threat than inflation,’ said Ben Bretell, economics editor at Hargreaves Lansdown. ‘There is even an outside chance of further quantitative easing, though this looks unlikely unless we see further sharp falls in inflation over the coming months.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: how to control your destiny in an age of regulation

Profile: how to control your destiny in an age of regulation

‘RDR was good news to us because it aligned our practices with the industry,’ says Courtiers boss Jamie Shepperd

Wealth Manager on Twitter