'No need for alarm': Industry reacts to UK's slide into deflation

Natalie Kenway
clock

The Office for National Statistics this morning revealed UK CPI inflation turned negative for the first time on record, but key industry figures suggest this deflationary spell will be temporary.

UK CPI inflation fell to -0.1% in April as the recent slump in the oil price continues to put deflationary pressures on the UK economy. The figure was in line with economists' forecasts, after two months stuck at the 0% mark. This is the first time CPI has turned negative since official records began in 1996, though some experimental data series show it was last negative over five decades ago, in March 1960. The Bank of England said in its Inflation Report last week that CPI should drift upwards in 2015, and industry commentators agree a deflationary period will be short-lived. Here a...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot