“Inflation falls below BoE target at 1.7%”

An independent (financial adviser’s) view

It seems like only yesterday that we were fretting over inflation of over 10% a year; well, it was around 18 months ago. I remember my ‘kids today snowflakes’ relaying of my ’70’s battle stories, of weekly increases in the price of sweets when inflation hit 23%. When it comes down to low, single figures we seem to assume that prices are actually falling, but the ‘basket’ of goods and services used to measure inflation is an average, and some things, of course, are still going up at an uncomfortable rate. It does mean, however, that interest rates will almost certainly start to fall, which is more often than not good news for investments. Shares become more attractive as bank accounts pay less and all those bonds paying 4% are worth more the soon-to-be current crop. So good news? Would that it were so simple.

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