Skip to main content

Inflation

United Kingdom Inflation Rate 1989-2015 

Consumer prices in the United Kingdom rose by 3 percent in the year to September 2017, as widely expected, following a 2.9 percent gain in the previous month. It was the highest inflation rate since April 2012, mainly due to rising prices of food, transport and leisure activities. The annual core inflation rate, which excludes prices of energy, food, alcohol and tobacco, stood at 2.7 percent, unchanged from the previous month's five-year high and in line with market consensus. 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 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.

Source: Trading Economics
Location: St Nicholas Court, Church Ln, Dersingham, King's Lynn PE31 6GZ, UK

Comments

Post a Comment

Popular posts from this blog

Budget 2021 – Small Business Owners

The planned increases to Corporation Tax Rates and what these mean for small business owners. Who will be affected? The corporation tax ‘main rate’ (currently 19%) is scheduled to increase considerably to 25% by April 2023. A new ‘small profits rate’ is also being introduced for business which make less than £50,000 profit a year. The main rate will be applied to businesses making more than £250,000 profit a year, with a ‘tapering’ of the two rates between these amounts.  Those companies under this lower £50,000 threshold will find themselves relatively unaffected by the new measures.  Businesses which find themselves between these rates will arguably be affected worst, having smaller profits to pay the extra tax from. For these companies, particularly which find themselves just over each of the limits announced, or indeed the tapering limits yet to be confirmed; additional tax planning will become an essential exercise going forward. Fortunately, these same companies will hav...
Read more

A Message from our Directors

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...
Post a Comment
Read more

Coronavirus (Covid 19) – Business Contingency Plan

Following the recent announcement by the government confirming their intention to move to a ‘delay’ phase relating to the control and containment of the Coronavirus, we wanted to share with you our business contingency plans which will go some way to safeguard the business operations as well as supporting you. You'll be reassured to know that business can be conducted by post, online, over the phone or through your portals. Should we immediately deploy our work from home plan, workflow and call answering will continue as normal, within the parameters of home working. However, please be patient with us as client reviews and new business is taking slightly longer than our standard turnaround times. We will monitor and continue to update you during this slow down. If anyone has been in contact with someone who has the virus, and/or are showing symptoms, they have been instructed to self-isolate and update management on a regular basis. We will continue to follow Government guideli...
Post a Comment
Read more