There is nothing about the UK entering deflation for the first time in more than 50 years that should unnerve investors, Guy Foster has said.
According to the Office of National Statistics, UK inflation, as measured by the Consumer Price Index, fell by 0.1 per cent in the year to April 2014.
However, many market commentators have called this a blip, with Mr Foster, the group head of research for Brewin Dolphin, claiming the UK was still on a good economic footing.
He said: “Overall underlying demand remains very much in goldilocks territory (not too hot, not too cold). There is nothing that will alarm investors or policymakers and the pace of inflation will pick up from here.”
