Slowing inflation welcomed by economist - Loans - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Slowing inflation welcomed by economist

Slowing inflation welcomed by economist

Category: Loans

Updated: 23/01/2009
First Published: 23/01/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

News that the rate of inflation in the UK is slowing has been welcomed.

Geoffrey Wood, professor of economics at the Cass Business School, noted that inflation is a "very bad thing" and a return to target levels will be beneficial.

However, he added that the fact that it has taken an economic downturn to bring about a sharp reduction is a "pity".

The government's official measure of inflation - the consumer prices index - has slowed recently, dropping from 4.1 per cent in November to 3.1 per cent last month.

And with the Bank of England showing concern that this will lead to deflation, some secured loans have become cheaper as the base rate has been cut to offset the risk.

But Professor Wood remarked: "We shouldn't exaggerate the threat of deflation, after all we have had periods of deflation in the past [for] quite long periods sometimes and in general this is no great economic harm."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!
 
Close