Investment Clock insights

Inflation should fall back towards 2% this year


Ian Kernohan

16 January 2018

Last month saw Consumer Price Index (CPI) inflation fall slightly to 3%. Much of the recent rise in inflation was driven by sterling's devaluation during 2016. 
However, this factor will begin to fade and inflation should fall back towards the 2% target over the coming year, with Producer Prices figures already showing input price inflation falling sharply.

Last month saw Consumer Price Index (CPI) inflation fall slightly to 3%. Much of the recent rise in inflation was driven by sterling's devaluation during 2016. 

However, this factor will begin to fade and inflation should fall back towards the 2% target over the coming year, with Producer Prices figures already showing input price inflation falling sharply.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.