Inflation

Renewed yen weakness could bring about a fresh global currency war resulting in a 'tidal wave of deflation' in China and the West, Société Générale's Albert Edwards has warned.

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 has turned negative for the first time on record, as the recent slump in the oil price continues to put deflationary pressures on the UK economy.

PIMCO's CIO Mihir Worah has labelled shorting UK RPI 'the carry trade of the decade', as he sees inflation in the UK remaining below current expectations.

Inflation: The elephant in the room

Sterling has fallen after the Bank of England downgraded its growth forecasts for the UK economy while indicating it could start to raise interest rates in mid-2016.

The return of inflation

Equity markets have begun to recover after an early slump driven by a plunge in German sovereign debt prices.

The Bank of England's Monetary Policy Committee has become less concerned with deflation risks, according to it latest minutes, despite CPI inflation dropping to 0%.

The UK economy is set to grow 2.8% this year, helped by CPI at zero and a lower oil price, according to the EY Item Club.