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Cheaper food drives UK inflation lower in September

Cheaper food drives UK inflation lower in September

Business
The UK inflation rate fell more than expected in September after hitting a six-month high in August.The Office for National Statistics said the fall to 2.4%, down from 2.7%, was largely driven by lower prices for food and non-alcoholic drinks.The Consumer Prices Index figure surprised economists who had been expecting inflation to fall to 2.6%.The result is expected to ease pressure on the Bank of England to raise interest rates in the near future.Andrew Wishart, UK economist at Capital Economics, said: "With inflation in line with the Bank of England's forecast, and measures of domestically generated cost pressures, such as core inflation and services inflation falling back, this reduces any pressure on the MPC to act again before it can assess the likel...
How can I protect my investments from inflation?

How can I protect my investments from inflation?

Finance
Here's the reality behind inflation worries How can I protect my investments against inflation? Even as your investments increase in value, inflation can eat away at what they're worth. There are things investors can do to hedge the immediate effects of inflation, or earn a return that outpaces inflation over time. But it can be hard to predict. "After-inflation returns are the only ones that matter for investors in the real world," says Robinson Crawford, an investment adviser with Montebello Avenue. Even if inflation is currently rising more slowly than analysts predicted, it's better to be prepared. Stocks Financial advisers say one of the most consistent hedges against inflation is a properly diversified stock portfolio. Equities have historically outpaced...
UK inflation falls to lowest in a year

UK inflation falls to lowest in a year

Business
UK consumer price inflation fell in March to 2.5%, the lowest rate in a year, according to the Office for National Statistics.It fell from 2.7% in February after prices for women's clothing rose at a slower pace than last year.The data appears to show that the squeeze on UK households may be coming to an end as wages rise.Despite the inflation fall, economists still expect the Bank of England to raise interest rates in May. According to the most recent figures, UK wages rose by 2.8% in February. The Bank is forecast to lift the interest rate to 0.75% from 0.5% next month.Laith Khalaf, senior analyst at Hargreaves Lansdown, said that while he expected the Bank to proceed with the increase, he believes the Monetary Policy Committee will move slowly.He said: "Wage growth remains surprisingly...
Inflation slides to lowest level for a year

Inflation slides to lowest level for a year

Business
The UK's cost of living has unexpectedly fallen to its lowest level in a year amid a slower rise in the price of women's clothing. The Office for National Statistics (ONS) said consumer prices declined to 2.5% in March from 2.7% in February.Most economists had expected inflation to remain unchanged."Inflation fell to its lowest rate in a year, with women's clothing prices rising slower than usual for this time of year," Mike Hardie, head of inflation at the ONS, said."Alcohol and tobacco also helped ease inflation pressures, with tobacco duty rises linked to the Budget not appearing this March, thanks to its new autumn billing."Growth in the price of goods leaving factories continued to slow, due mainly to a smaller increase in the price of food products compared with this time last year."...
Wages overtake inflation to end squeeze

Wages overtake inflation to end squeeze

Business
Wage growth rose to 2.8% in the three months to February, outstripping inflation for the first time in a year, official figures show.The figures from the Office for National Statistics (ONS) signal an end to the squeeze on household incomes after the slump in the pound following the Brexit vote drove the cost of living higher.Inflation had topped 3% in recent months but more recently has eased, dipping to 2.7% in February.The return to real terms wage growth will revive hopes for the struggling high street, where retailers have been struggling thanks to the strain in consumers' finances.It should also keep up expectations that the Bank of England will raise interest rates to 0.75% next month.There was a further boost from the official labour market statistics as the unemployment rate fell ...