UK inflation falls again

After a long stretch of economic unease, UK inflation has continued its downward trajectory, with the Consumer Prices Index (CPI) falling to 2.6% in the year to March, according to the latest inflation figures from the Office for National Statistics (ONS). This marks the second consecutive monthly decline and comes in lower than market expectations — a welcome development for households and …

Retirement ProfessionalsUK inflation falls again

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets The Bank of England’s (BoE) Monetary Policy Committee (MPC) opted to keep interest rates unchanged at 4.5% in its second meeting of the year. Eight MPC members voted in favour holding the interest rate steady, while Swati Dhingra wanted to reduce the rate by another 0.25 percentage points. Last month, the MPC implemented a quarter …

Retirement ProfessionalsBank of England halts interest rate cuts amid ongoing inflation

Inflation rises to 3% in January

The higher-than-expected rise adds to the Bank’s challenges when considering interest rates. UK consumer prices index (CPI) inflation rose to 3% in January, an above-expectation increase that adds to the Bank of England’s challenges in managing monetary policy.  According to the Office for National Statistics, rising petrol and food costs drove inflation. Private schools passing on VAT bills to parents …

Retirement ProfessionalsInflation rises to 3% in January

Bank of England slashes interest rates by 25bps to lowest level in 18 months

First MPC meeting of the year The Bank of England’s (BoE) Monetary Policy Committee has cut interest rates by a quarter point, from 4.75% to 4.5%. Seven MPC members voted in favour of the interest rate cut, while two preferred a 50bps snip. The Bank argued that over the past two years, there has been a “substantial progress on disinflation …

Retirement ProfessionalsBank of England slashes interest rates by 25bps to lowest level in 18 months

UK inflation lowers to 2.5% in December

Down from 2.6% in November The UK Consumer Prices Index (CPI) dropped to 2.5% in December, below FactSet’s consensus of 2.8% for the month. According to data from the Office for National Statistics today (15 January), the downward trend was driven by restaurants and hotels, with the latter recording a 1.9% decline in prices over the month, as opposed to …

Retirement ProfessionalsUK inflation lowers to 2.5% in December

Gilt yield drama makes rising annuity rates ‘hard to ignore’

Dramatic spike in government borrowing costs January started in dramatic fashion for government borrowing with a significant cost spike which saw the 15-year gilt yield standing at 5.17%, compared to 4.23% on the same date the previous year. Uncertainty about the performance of the UK economy and the ramifications for inflation after Donald Trump returns to the White House are …

Retirement ProfessionalsGilt yield drama makes rising annuity rates ‘hard to ignore’