UK economy not exactly a steam train
Nancy Curtin (pictured), CIO of Close Brothers Asset Management, comments on the latest UK inflation figure of -0.1 per cent…
This shouldn’t be cause for concern. Today’s result is simply evidence of how the UK economy is delivering at the moment – not exactly a steam train bounding ahead at full speed, but certainly enough to keep things moving along at a steady enough pace.
Yes, the inflation outlook is a little soft, but wage growth is increasing and retail consumption is on the up, which will help to drive things forward over the next few months. Though the effect of the oil price falls is slowly fading, this and global disinflationary pressures are still threading through. All in all, though, today isn’t damaging, and the Bank will simply see this is as confirmation of its decision to hold off a rate hike until domestic price pressure begins to rise.