Deflation – Impact on DB scheme sponsors

Published by Simon Taylor on

The latest published inflation statistics show that inflation has now fallen below zero over the 12 months to March 2015 (as measured by CPI), with RPI falling to 0.9%.

So could we be seeing the start of a period of sustained price falls? Not according to Mark Carney, Governor of the Bank of England.

This briefing note explores the outlook for inflation, growth expectations and yields, and comments on the implications for sponsors of defined benefit pension schemes together with actions they can take.