You are here: Home - Saving & Banking - News -

Gartmore expects inflation pressures to relent in 2009

0
Written by:
14/08/2008

Gartmore is predicting inflation pressures to yield in 2009, despite consumer price inflation rising to 2.4% above the Bank of England’s target rate in July.

The month-on-month increase from June (0.6%) was the largest since records began in 1997, with a surprisingly strong rise in food prices adding 0.3% to the annual rate.

Bank governor Mervyn King will be writing another letter to the Chancellor to explain away this latest data, but this won’t bring inflation down. The mathematics might though; even if electricity, gas and petrol prices stay at their current elevated levels, inflation should fall significantly next year as recent sharp price increases begin to drop out of the year-on-year numbers. And that’s before the sharp fall in the oil price since mid-July is taken into account.

Chris Burvill, manager of the Gartmore Cautious Managed Fund, said: “There’s a general slowdown underway. Oil has come down because demand has fallen.

“We expect the headline inflation numbers to remain poor for the next six months, but beyond that there is a high probability that inflation will start to fall.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Brits value lives at £350,000 but scrimp on cover

The average UK adult believes they are worth £350,000, according to a recent survey from the Post Office, but 75%...

Close