Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter