The key sectors to back as inflation slides to new low

Fund managers have backed financials, retailers, and housebuilders to benefit following the latest move down in UK inflation.

Figures from the Office for National Statistics last week showed CPI inflation fell to 1.5% in the year to May, down from 1.8% the previous month, and lower than analysts had forecast. The drop means inflation is now at its lowest rate for over four years. RPI inflation, which includes mortgage payments, fell slightly less sharply from 2.5% in April to 2.4% in May. The ONS said the figures had been impacted by the ‘Easter effect’, with the timing of Easter boosting April’s figures as consumers went on holiday, spending money on air fares and other travel expenses. A supermarket pri...