Last week the Office for National Statistics (ONS) revealed UK CPI inflation had tumbled to its lowest level since September 2009, which came as a surprise to economists and market participants alike.
At 1.2% for the month of September, CPI inflation now stands just above the trough of 1.1% seen exactly five years ago. The news caused M&G’s Jim Leaviss to jokingly ask whether this fall marks the beginning of a ‘great depression’ for the UK. Facetiousness aside, could this be the beginning of a downturn none of us were expecting? There are certainly reasons for concern, not least the spectre of deflation and what that entails for the wider economy. This shadow hangs heavy over the eurozone, but would still be a hugely surprising turn of events in the UK. The answer could lie w...
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