View more on these topics

UK dodges deflation… but only for now, says economist

UK inflation remained at 0 per cent last month but the measure for core inflation decreased to a nine-year low, according to the latest data from the Office for National Statistics. 

CPI stayed at 0 per cent in March following the surprise drop in February from 0.3 per cent. 

However, core inflation – a measure of inflation that excludes certain items that face volatile price movements – was dragged lower by clothing and footwear prices to 1 per cent, from 1.2 per cent in February and 1.4 per cent in January.

IHS Global Insight chief UK and European economist Howard Archer says: “With modest deflation still likely to occur over the next couple of months and inflation likely to remain very low for a prolonged period… consumers should see appreciable improvement in their purchasing power over the coming months.”

However, Archer believes the chance of prolonged deflation is still unlikely in the UK.

Recommended

Business-Handshake-Finance-Deal-700.jpg

GE Capital puts lending unit up for sale in slimmed-down change of focus

GE Capital has put its specialist lending subsidiary, GE Money Home Lending, up for sale. In a note to brokers last week, the firm said it plans to reduce its size and concentrate on its industrial and manufacturing businesses. The note said: “GE Money Home Lending is among the platforms targeted for disposition.We anticipate being […]

Home-House-New-Build-700.jpg

Next govt ‘must fix housing crisis’

Council of Mortgage Lenders chairman Moray McDonald has urged the next government to sort out the housing crisis “once and for all”. Speaking last week at the trade body’s annual lunch in London, McDonald, head of personal and business banking products at Royal Bank of Scotland, called for the major parties to agree on a […]

Sign-Signing-Letter-Contract-Business-700.jpg

Letters: Housing manifestos could do so much more

Star letter: Housing manifestos could do so much more The general election is focusing on property this week and we are seeing commitments about shared ownership and Help to Buy to dovetail with the Budget announcements on new deposit Isas for first-time buyers. As ever, I am left feeling: “That’s great, but what more could be […]

Newsletter

News and expert analysis straight to your inbox

Sign up