ECONOMICS COMMENTARY
Mar 25, 2014
UK income squeeze lowest for over four years as inflation falls to 1.7%
UK inflation fell to its lowest for over four years in February, reducing the squeeze on the cost of living while at the same time enabling to Bank of England to keep interest rates low for longer. The big uncertainty for the outlook for inflation lies with wages and salaries, which are finally starting to show signs of rising. The question is whether they will rise enough to worry policymakers into tightening policy sooner than currently envisaged.
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