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 Trump protests: Psigma's Becket reports from the US

Trump protests: Psigma's Becket reports from the US

Psigma's chief investment officer Tom Becket encounters a little more than he bargained for in a recent trip to the US.

Play Neil Woodford uncut: the full video

Neil Woodford uncut: the full video

We bring you the full video from Woodford's recent visit to Citywire HQ.

Play What the Next Generation is bringing to the wealth world

What the Next Generation is bringing to the wealth world

To mark Citywire's inaugural Next Generation Forum we ask tomorrow's talent what influence they think they can have on the wealth industry.

Read More
Your Business: Cover Star Club

Profile: Brewin's Newcastle boss on the increasingly competitive NE

Profile: Brewin's Newcastle boss on the increasingly competitive NE

William Baker Baker, Brewin Dolphin’s Newcastle office head, is a fixture in the firm, having been with them for 30 years.

Wealth Manager on Twitter
Retirement income challenge: we need round pegs for round holes
  • Old Mutual Wealth hires adviser distribution specialist
  • Vodafone leads FTSE higher on European turnaround
  • Treasury pushes 'City visa' for financial high fliers
  • Ex-Coutts directors join forces at fledgling wealth boutique
  • Cable becomes new Lib Dem leader
  • Charles Stanley strikes pay deal with Manchester team
  • Wealth boutique hires ex-Close specialist investment head
  • Friday Papers: May pledges no Brexit ‘cliff edge’ for business
  • Overnight Markets: Wall Street flat as Home Depot pressures Dow
  • FTSE rallies as dovish Draghi can't stop euro surge
  • Boutique plans to unitise managed portfolio
  • ‘Brain disorder research’ scheme guilty of tax avoidance
  • Neuberger Berman hires China expert
  • FCA tells property funds to up liquidity management
  • Schroders veteran Tosato among trio of Pictet board hires
  • Wealth Manager's 25 most popular fund managers in H1 2
  • FSCS opens compensation door at failed wealth firm
  • S&W revenue jumps as wealth arm gains momentum
  • Walker Crips poaches Tilney London director 1
  • Robo onslaught continues with two new launches 2
  • IoD warns May businesses ‘still in the dark’ about Brexit
  • Profile: Brewin's Newcastle boss on the increasingly competitive NE
  • Read More
    -->