Inflation

The total deficit of private sector UK defined benefit (DB) schemes increased by £100bn last month as rising inflation expectations pushed up liabilities, figures show.

A drop in the FTSE over August has wiped out summer deficit reduction as levels return to those seen in May, research from Mercer shows.

Yields on ten-year gilts rose this morning after the minutes from the last meeting of the Bank of England's Monetary Policy Committee (MPC) showed the majority of members backed new governor Mark Carney's move to provide forward guidance on interest rates....

Fixed income managers have cautioned the Bank of England (BoE) will be forced to backtrack on its forward guidance measures as it has been too pessimistic over the state of the UK economy.

The Bank of England (BoE) has said it will not raise the base rate of interest before the unemployment rate falls to 7% and warned investors are still expecting rates to rise sooner than is likely.

Gilt yields buck the trend of previous months and fall during July increasing UK corporate deficits by £50bn, research from Xafinity finds.

UK CPI inflation rose from 2.7% to 2.9% in June, with the largest upward contributions coming from petrol, clothing and footwear.

Europe is facing a real danger of deflation according to Legal & General Investment Management (LGIM).

UK CPI inflation rose from 2.4% to 2.7% in May, according to the Office for National Statistics, a larger than expected rise driven by transport and clothing costs.

The value of the market for liability driven investment (LDI) has risen 11% over 2012 led by the growth in inflation hedging, a KPMG report finds.