Inflation

As 2013 draws to a close, we look back over the major news stories in an eventful year.

The UK's headline inflation rate has fallen to its lowest level in four years after edging down to 2.1% in November.

The UK could be the first developed country to raise interest rates, with a hike coming as soon as next year, according to Fidelity fixed income head Andrew Wells.

Macro data was at the forefront of investors' minds this week, after a surprise drop in UK inflation sent the pound lower.

The Bank of England has sharply revised its unemployment forecasts but emphasised this does not mean it is guaranteed to hike rates once the 7% threshold is reached.

UK CPI inflation dropped to 2.2% in October, a larger-than-expected fall that sent sterling to a two-month low against the dollar.

The Bank of England is expected to raise its growth forecast for the UK to 3% following the strong recovery the country has seen.

Economic thinktank the National Institute of Economic and Social Research (NIESR) has forecast the economy will grow by 1.4% this year.

Scott Jamieson's Kames Inflation Linked fund is set to change its benchmark and investment objective, and will move from the IMA Mixed Investment 0%-35% Shares sector to the Specialist sector.

UK consumer prices index (CPI) inflation remained stable in September at 2.7%.