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.
Your Business: Cover Star Club

Profile: how Cerno was forged in Asia's boom and bust

Profile: how Cerno was forged in Asia's boom and bust

Cerno Capital’s investment philosophy was born in the spectacular boom and bust of Asia in the 1990s.

Wealth Manager on Twitter