by Philip Scott, This is Money
Deflation is blighting the UK but some fear a return to inflation is not far away
- we outline the best investment hedges against it
Deflation is stalling the UK's economic engine. In February the retail price index (RPI), which includes housing and mortgage costs, recorded deflation for the first time in almost 50 years, after dropping from 0% to -0.4%.
The fall was caused largely by low interest rates driving payments on tracker mortgages down - good news for borrowers, bad for beleaguered savers.
Simultaneously, the consumer price inflation (CPI) index, which excludes mortgage and housing costs, dropped back by 0.3 percentage points to 2.9%, chiefly because of cheaper fuel and food.
in:
http://www.thisismoney.co.uk/investing/article.html?in_article_id=483583&in_page_id=166&ct=5
Ruin-Nation
11 months ago
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