This week has seen global financial markets continuing to collapse. The UK FTSE entered so-called ‘bear market’ territory (falling at one point by over 20% from peak). Official figures showed the UK CPI was zero in 2015, the lowest annual figure since the great depression. In the policy arena,…Read more…
UK inflation at zero and rate has been falling faster than in eurozone
Inflation fell to zero in February 2014; down from 0.3 per cent in January. Once more the figure came in lower than expectations, on this occasion for 0.1 per cent (including the Bank of England in their latest Inflation Report). CPI records only began in 1989, but ONS projections show figures…Read more…
Deutsche Bank U-turn on deflation
At 0.5%, CPI inflation in December fell below the consensus forecast (0.7%) and way below the Bank of England’s November Inflation Report forecast for 1.0%. This is approaching deflationary territory, and I set out my own views yesterday. Understandably the government is desperately trying to…Read more…