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UK Inflation and GBP


Guest Sam Bouman

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Inflation is a sustained general increase in the price level of goods and services and the fall of
the purchasing value of money.

When the general price level rises, each unit of currency buys fewer goods and services and determines the purchasing power of individuals. In the current economic climate, the UK has currently reached more than a three year low, which overall can raise the pressure on the Bank of England to cut interest rates.

And, with inflation falling in the UK this has caused the pound to slip as traders start to price in an interest rate cut.

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