Investment Clock insights

Rising inflation takes a breather

Ian Kernohan 

11 April 2017

Consumer Price Index (CPI) inflation was flat in March at 2.3%, unchanged from February.  The later date of Easter this year will have held back prices in March, thanks to the lower air fares. However, while the impact of rising oil prices last year is now fading, the full impact of sterling’s devaluation is still feeding through. We would expect the air fare effect to reverse next month, and CPI to move higher, further above the 2% target.

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.