Share Prices & Company Research

Press Release

23 May 2018

The only way is up?

The price of goods has fallen further than expected according to the latest consumer price index figures.

Joel Dungate, Investment Analyst, said: “April’s inflation figures came in slightly below expectations at 2.4%. Therefore, inflation is slowly creeping down towards the Bank of England’s 2% target and further continuation of this would ease pressure on the Bank to raise rates, having voted 7-2 to keep them on hold at its May meeting.

“However, there are reasons why future inflation may move back up. In recent weeks, the price of oil has risen sharply and the value of the Pound has fallen again, both of which could drive up the costs of goods. In addition, recent data showed that wage growth had overtaken inflation, putting more money into the pockets of consumers. In theory this could increase demand and push prices higher.”
The only way is up?