06 March 2015
1. A deflationary market
A drop in UK inflation had been widely predicted but the sharp, rapid rate of decline caught most observers by surprise.
In Dec 2014, the annual rate of CPI stood at just 0.5%, bringing the economy close to deflation. This is already established in the Euro Area although both the OBR and the Bank of England expect it to be averted here.
Deflation is certainly a f...