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.

UK inflation hits four-year low of 1.7%

UK inflation hits four-year low of 1.7%

UK Inflation fell to a four-year low of 1.7% in February, the fifth monthly drop in a row.

The reading, which was down from 1.9% in January, meant the cost of living is now well below the Bank of England's 2% target.

The fall was prompted by the biggest fall in fuel prices since 2009, and also from price pressure on household services and clothing, although price drops were slightly offset by household goods and recreation sectors getting more expensive.

With interest rates at historic lows, today's reading will reduce pressure on the Bank of England, including governor Mark Carney (pictured) to raise the cost of borrowing in the near future.

'In our view, a favourable combination of lower import prices, flat commodity prices and recovering productivity is likely to help CPI inflation fall further, perhaps to about 1% by the end of the year. This would both support the recovery by boosting real income growth and allow the MPC to keep official interest rates on hold until well into next year,' Samuel Tombs, UK Economist at Capital Economics said.

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 Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: UBS' robo boss on what his tween can teach the industry

Profile: UBS' robo boss on what his tween can teach the industry

Co-head of UBS SmartWealth Shane Williams explains the simple life lessons missed by the first wave of robo pioneers

Wealth Manager on Twitter