Inflation fell back to zero in the year to the end of August, according to the Office for National Statistics (ONS), pushing out expectations of an interest rate rise again.
The ONS said that Consumer Price Index (CPI) fell back from the 0.1% recorded in July as clothing prices rose at a slower rate and fuel prices remained low. The FTSE 100 rose slightly on the news, after falling by around 1.1% in morning trading. Sterling has also strengthened during Tuesday trading. Earlier in the month, the Bank of England's monetary policy committee voted to keep its base rate at 0.5%, leading its notes with a comment on the suppressed inflation rate. Anna Stupnytska, Fidelity's global economist, said that the fall back to zero pushed out any rate hike expecation...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
