How sustainable is UK inflation?

INFLATION

clock • 4 min read

As the CPI rate slows to the Bank of England's official target, Rebecca Jones asks what we can expect next.

Jason Hollands, MD - business development, Bestinvest We expect a relatively benign environment for official UK inflation. While key contributors to the most recent decline included the discounting of food and non-alcoholic beverages, downward pressure on inflation has actually been a global phenomenon. Falling energy prices and a weak outlook for global raw materials have largely driven inflation down, as the slowdown in China's growth story reverberates around the world. Growing inventory levels of industrial metals suggests a further decline in demand may be in the pipeline. Tho...

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