Inflation

Sterling fell against the euro and the US dollar as the latest Monetary Policy Committee (MPC) minutes revealed a unanimous vote against hiking interest rates.

Indian equities stood out in Asian trading overnight after the Reserve Bank of India (RBI) announced a surprise cut to interest rates in order to combat falling inflation.

The sharp fall in the UK inflation rate is not cause for concern, Chancellor George Osborne will say in a speech later today.

Figures released this morning by the Office for National Statistics showed UK CPI inflation fell to a surprise 0.5% in December, the lowest level since May 2000. We round up the reaction from leading investors and economists.

UK consumer price inflation has fallen to a 15-year low of just 0.5%, driven by plunging oil prices.

A hawkish statement from the Federal Reserve has been perceived by markets as another step towards an interest rate rise, although it is unlikely to come before April 2015.

UK inflation is likely to remain below target for longer, but some members of the Monetary Policy Committee (MPC) see possible risk factors that could cause it to overshoot its 2% target in the coming year.

UK CPI inflation fell further than expected in November to its lowest level since 2002, according to the Office for National Statistics (ONS).

Minutes released by the Bank of England's Monetary Policy Committee this morning revealed a more hawkish stance than investors expected, helping to lift the flagging UK currency.

UK CPI inflation rose to at an annual rate of 1.3% in October, according to ONS figures released today.