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Inflation falls below zero

For the first time since March 1960, annual inflation measured by the Retail Prices Index – which includes housing costs such as mortgage interest payments and council tax – fell below zero to -0.4%.

While the Consumer Prices Index annual inflation – the government’s target measure – fell to 2.9% in March, down from 3.2% in February.

The largest downward effect on the CPI came from housing and household services.

This was mainly due to a fall in gas bills while they were unchanged a year ago. There was also a downward effect from heating oil which fell this year compared with a rise last year.

Food and non-alcoholic beverages contributed to the downward move with the largest effect coming from vegetables where prices fell by more than a year ago across a range of products.


A funny old year

The past 12 months have been turbulent – just take a look at this chart of the FTSE 100 over the last year. There have been some points which I’m sure would have caused your clients some concern, and possibly even had them looking for an alternative investment with reduced volatility; perhaps without reducing their […]


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