UK inflation: bumping around before a bounce
Commenting on this morning’s inflation data, Melanie Baker, senior economist at Royal London Asset Management said:
“Inflation has been bumpy around similar levels since the Summer and there isn’t much evidence of headline inflation trending anywhere yet.
“For now, the summer’s temporary VAT cut will still be weighing on core and headline inflation. But VAT is set to rise again on April 1st. Headline inflation will also get a mechanical boost from positive energy price base effects.
“Problems at the border and global supply chain issues that seem to be pushing up shipping costs, may also play a role.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £164 billion of assets and employs 129 investment professionals as at 31 December 2021. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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