The Trader 

Market Outlook: UK inflation slips, M&S profits slide, indices hold trading ranges

Market Outlook: UK inflation slips, M&S profits slide, indices hold trading ranges

It’s widely accepted that the pandemic is a profoundly deflationary shock to the global economy. No surprise then that UK consumer price inflation slowed to 0.8 per cent in April from 1.5 per cent in March. In fact, the bulk of the decline was due to lower oil prices. Schemes to keep the economy on life support continue to support purchasing power – it may take some months for inflation to bottom as the economy goes through a painful readjustment. Input prices for manufacturers declined 5.1 per cent, whilst factory gate prices were 0.7 per cent lower. What comes next is anyone’s guess, but inflation could be round the corner as central banks and governments deal with vast debts. Read why Chris Dillow thinks inflation could be a boon for equities. 

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Register
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now