You are here: Home - Household Bills - News -

Falling inflation in February ‘is sign of things to come’

0
Written by:
25/03/2020
UK inflation fell to 1.7% last month, dragged down by lower petrol prices, official data shows.

The Consumer Prices Index (CPI) fell 0.1 per cent in February, with housing, water, electricity and gas bills also falling, according to the Office for National Statistics (ONS).

However, the data was collated from before the coronavirus crisis hit the UK.

Since then, the Bank of England has slashed interest rates to almost zero.

Experts predict the fall last month is a sign of things to come.

“We expect the effects of the coronavirus crisis to drag inflation below 1.0% in the months ahead,” said Ruth Gregory, senior UK economist at Capital Economics.

“The coronavirus crisis will reduce core goods and services inflation, with the earliest effects likely to show up in the travel and tourism industries.”

She added: “We think that inflation will average just 1.2% in both 2020 and 2021 meaning that even by next year, there may be little pressure on the MPC [Monetary Policy Committee] to raise interest rates from the current all-time low of 0.10%.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
Reprehensible coronavirus scams set to increase: how to stay safe

Unscrupulous fraudsters are using the Covid-19 pandemic to steal money from unsuspecting victims and this is only likely to increase....

Close