Inflation

Recent announcements from the Bank of England show a more cautious outlook for inflation. Helen Morrissey asks what this means for schemes.

The latest inflation figures could cut deficits by £10bn

Pushes out rate hikes

In welcome news for many defined benefit pension schemes, the 12-month Consumer Prices Index (CPI) slipped back to zero in August, according to the Office for National Statistics (ONS).

Bond market slowly begins to catch up with demand

UK inflation rises 0.1% in July to beat forecasts

The Consumer Prices Index (CPI) 12-month rate edged up to 0.1% in July, the sixth successive month it has been at or around zero.

The UK's inflation rate fell back to zero last month, down from 0.1% in May, as the prices of clothing, fuel and food all fell.

Caffyns has removed almost £9m of defined benefit (DB) pension liabilities from its scheme after switching its pension payments to the Consumer Prices Index (CPI).

Expectations that low oil prices could trigger a period of deflation have been met after the consumer prices index (CPI) weakened to -0.1% for the year to April 2015.