UK inflation remains subdued

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threadneedle uk head sees strong opportunities in growth stock, as market is poor at valuing them

Threadneedle UK manager Leigh Harrison is bullish on the equity market, arguing the economic backdrop is positive, valuations are low and corporate activity will continue. Real GDP growth of around 2% in the UK suggests to Harrison that the economy is firmly established and he is encouraged by the fact inflation remains subdued, at just over 2%. Speaking at Investment Week's Northern Markets Forum, he said: "It has picked up since 2002 but core inflation is still relatively low and the recent rise is due to the increase in energy prices." Harrison is confident that interest rate rises a...