A big week for macroeconomic announcements has already seen a drop in UK inflation and ongoing Brexit transition talks, while a monetary policy decision from central banks both sides of the Atlantic is coming on Wednesday and Thursday, but what does it mean for markets?
The Consumer Prices Index (CPI) dropped to 2.7% in February, down from 3% the month before, setting inflation on a slow course towards the Bank of England’s 2% target.
The Office for Budget Responsibility’s confidence in predicting inflation in 12 months’ time has been described as a “mug’s game” by a top-quartile UK equities manager.
Global markets recently faced a correction, inflation remains above the 2% target and interest rates are likely to rise, but how can investors prepare?
Discussing inflation and interest rates at a dinner party is a sure-fire way to lose friends. For investors fighting against the tide of today’s backdrop though, it’s a topic that simply isn’t being talked about enough.
Ten-year treasury yields have soared after US consumer price inflation (CPI) surpassed expectations by 0.5% in January.
The Bank of England has held interest rates at 0.5% but hinted at quickening the pace of further increases to bring inflation back in line with its 2% target.
Average weekly household spending rose to its highest level since 2006 for the financial year ending 2017, as retail sales for December declined.
During almost a decade of experimental monetary policy from central banks, inflation has been notable by its absence across most economies. With monetary policy beginning to diverge and unemployment falling, will it rear its head again or has it peaked?
December saw the largest increase in US inflation in 11 months, according to the latest consumer price inflation (CPI) data from the Bureau of Labor Statistics.
Inflation, or the lack of it, especially in Europe, is one of the biggest uncertainties facing the markets in 2018, according to Karen Ward, the new chief market strategist for UK and Europe at JP Morgan Asset Management.
Andrew Harman, senior portfolio manager at First State Investments, believes strength in emerging market equities, rising inflation and low high-yield spreads will influence the firm’s multi-asset portfolio positioning in the year ahead.
