Inflation

UK inflation expectations yesterday hit their highest levels since the beginning of the financial crisis in September 2008.

Mark Carney's arrival at the Bank of England will prompt a fresh round of monetary policy with "no let-up" for pension funds already struggling with low interest rates, the former deputy governor of the Bank told delegates.

The vast majority of respondents to the National Statistician's consultation on the retail prices index called for no change because of fears over the impact of any alteration on savings.

Insurer RSA saw its deficit rise substantially despite an increase in its assets and contributions from the sponsor, its results show.

Telecoms group Everything Everywhere has seen its defined benefit scheme deficit rise by 48% over 2012 as liabilities increased by £60m, according to its results.

Pendragon has merged its six defined benefit schemes into one as its liabilities increase by 245%, its full year results show.

The Bank of England's Monetary Policy Committee will tolerate missing the inflation target for the next two years in order to support the UK recovery, said Bank governor Mervyn King.

The number of trust-based DC schemes has fallen by 40% over the last 14 years but the remainder have larger memberships, The Pensions Regulator's data reveals.

The ‘no change' announcement by the Office for National Statistics has added £20bn to FTSE100 deficits as gilt market expectations for inflation increased.

Scheme deficits remained largely unchanged over the last year despite gains in asset prices, Pension Protection Fund research says.