Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter