INVESTMENTS & PENSIONS
Headlines services inflation has been another slightly sticky issue . At 6.5 % in January , it has come down only slightly from its peak of 7.4 % in July 2023 . As the cost of services / bills index-linked to inflation , such as mobile phone contracts , some rents and property insurance charges , rise less than last year , however , this figure too should start to decline more meaningfully .
Maybe it is Spring and the hope and renewal it unleashes , or just good old-fashioned analysis based on intense research , but we are of the opinion that inflation is now headed decisively lower . As a result , we have sold out of all our inflation-linked gilts and replaced them with nominal bonds . We like the duration component of the inflationlinked bonds but not the inflation-linked component , as we don ’ t believe the expected fall in inflation is fully priced in .
FIND
OUT MORE
1 Jay Powell says Federal Reserve ‘ not far ’ from having confidence to cut interest rates ( ft . com ) 7 March 2024
2 BOE Can Cut Rates Before UK Inflation Returns to Target : Bailey - Bloomberg 20 February 2024
3 Christine Lagarde signals June rate cut as ECB lowers inflation forecast ( ft . com ) 8 March 2024
4 Changes to energy price cap between 1 April to 30 June 2024 | Ofgem publication date 23 February 2024
5 Hunt extends fuel duty freeze and raises premium air passenger duty ( ft . com ) 6 March 2024
6 Monthly Decision Maker Panel data - February 2024 | Bank of England publication date 7 March 2024
7 National Minimum Wage and National Living Wage rates - GOV . UK ( www . gov . uk ) as at 8 March 2024
8 John Lewis and Co-op to increase minimum pay for staff - BBC News 7 March 2024
9 Tesco latest supermarket to increase staff pay - BBC News 6 March 2024
10 Budget 2024 : UK taxes head for highest level since 1948 despite Hunt ’ s NI cut | Budget 2024 ( spring ) | The Guardian 6 March 2024
IMPORTANT INFORMATION . FOR PROFESSIONAL INVESTORS ONLY
Your capital is at risk . This material should not be considered as an offer , solicitation , advice or an investment recommendation . This communication is valid at the date of publication and may be subject to change without notice . Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness .
Issued by Threadneedle Asset Management Limited , No . 573204 and / or Columbia Threadneedle Management Limited , No . 517895 , both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority .
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