Inflation

The UK Consumer Prices Index (CPI) was unchanged in August at 3.1%, according to the Office for National Statistics (ONS).

Weak growth and falling inflation mean investors should expect more quantitative easing by the end of the year, says Fidelity's asset allocation director Trevor Greetham.

M&G is launching what it believes to be the first inflation-linked corporate bond fund aimed at retail investors in the UK.

Old Mutual's Simon Murphy has begun introducing food retailers into his fund, believing the sector is well positioned to benefit from food price inflation.

Interest rates could rise substantially to 8% within two years to stave off soaring inflation, new research suggests.

Henderson's Bill McQuaker has increased exposure to index-linked bonds in recent weeks on the view the global economy faces a "meaningful risk" of higher inflation in the medium-term.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.

Eurozone annual inflation hit a 20-month high in July at 1.7%, figures from Eurostat show.

The Bank of England has revised down its forecast for UK economic growth and expects inflation to remain above the 2% target until the end of next year.

Bank of England governor Mervyn King says growth is going to be weaker than previously expected and inflation is likely to above the 2% target until the end of 2011.