Inflation (source trading economics)

United Kingdom Inflation Rate 1989-2015

Consumer prices in the United Kingdom increased 2.3 percent year-on- year in February of 2017, above 1.8 percent in January and beating expectations of 2.1 percent. It is the highest inflation rate since September of 2013, boosted by rising fuel prices while food cost increased for the first time in 34 months. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2017, reaching an all time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015.

Consumer prices index (CPI) is the government's preferred measure of inflation. It is used for international comparison and the government inflation target for the Bank of England Monetary Policy Committee. It is available as an index from January 1997, with estimates back to 1988. It excludes mortgage interest payments and council tax. As of the 2010 budget, CPI as part of the triple-lock, is used to index state pensions in place of Retail Price Index (RPI).

Why is inflation important?

Keeping a healthy cash flow throughout your life is essential and one of the biggest risks to capital is inflation risk. It is important this is taken into account with our recommendations and considered when discussing your attitude to investment risk within our client meetings.

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Why do we use Rayner Spencer Mills Research (RSMR)?

As part of our centralised investment process we use the research services of RSMR to construct our range of model portfolios. RSMR first launched their online fund ratings service for advisers back in 2007 and this offers us the widest range of ratings covering active and passive funds, Socially Responsible Investment-themed funds, multi-asset fund ranges, investment trusts and Discretionary Fund Managers. Their ratings are awarded following a rigorous process and are supported by factsheets and guides. Each factsheet provides background information, a summary of the investment process, comments and opinions. The team at RSMR have many years’ experience and maintain their market knowledge by meeting with the fund management community, market analysis and their own continuing professional development. Their research is completely impartial and they cover the whole market composed of all funds across the universe of the Investment Association (IA) sectors. RSMR review and research fun...

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A message to all our existing, and new clients including our professional connections. It is self-evident we are living through an unprecedented crisis as a result of the coronavirus pandemic. All the normal activities and interactions of society and business across the world have been brought to an abrupt halt. We do not know how long the current situation will last, however what we do know is that “IT WILL PASS”. Our personal view is the worst will be over in a few months if Government guidelines are followed and that life, and the markets, will then start to recover. We urge all clients during this time, not to panic and remember the key reasons why you invest. We also thought it important to summarise below: New client meetings and review meetings are now being conducted over the telephone We have excellent systems in place to manage client money efficiently and remotely Our systems provide high levels of client security Our Investments process is built on diversification...

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