Share Prices & Company Research


17 October 2018

Relief as inflation fall reduces pressure to raise rates

The UK inflation rate has slipped to 2.4% in September, below expectations of 2.6%. The fall comes after inflation reached a six-month high of 2.7% the previous month.
Joel Dungate, Investment Analyst, said: “The figure came a day after encouraging wage growth figures, which showed pay rose by 3.1% in the three months to August, the fastest pace in nearly a decade. This is positive news for consumers, as it should, in theory, increase their spending power. This, in turn, is good news for the UK economy which relies heavily on consumer spending.
“The inflation figure will also come as a relief to the Bank of England, which will be under less pressure to raise rates in the near future. It now appears increasingly unlikely that the central bank will raise rates again before the terms of the UK’s Brexit deal with the EU are clarified. On the other hand, if the trend of real wage growth continues, then we might expect rising inflation in the longer term.”
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Relief as inflation fall reduces pressure to raise rates

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