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UK inflation rate falls – Good news?

How can that be?  Well this is the time of year that the figure is used to set the annual increases for some pensioners and disability benefits, as well as public service pensions and the state second pension.

Inflation as measured by the Consumer Prices Index fell to -0.1% in September, this was due to a smaller than usual rise in clothing prices, and falling motor fuel prices. The CPI rate has been at or close to zero for most of this year. It was last in negative territory in April.

Most benefits will be frozen from April because of the latest data.

The law does not allow for a down rating of benefits, so the practical effect is that benefits are likely to be frozen from April. The exact change, or lack of it, will be approved by the government in the coming weeks.

What this means for you is that pensioners here and in the UK could soon be facing a squeeze on living standards

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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Could Italy tear the EU apart?

Europe is heading towards a “cataclysmic event” that could lead to the collapse of the euro and the end of the European project as we know it, according to Nobel prize-winning economist Joseph Stiglitz. In the run-up to the UK’s vote to leave the European Union, Italy’s litany of problems had gone largely unnoticed. However, Italy  – the Eurozone’s third largest economy – not only faces political turmoil but enormous economic strife too, and a banking industry on the verge of collapse.

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Expats in France enjoy improved quality of life

France has long been a favourite destination for expats. But what is it that’s so alluring about the country? Two recent expat surveys have highlighted a number of reasons behind why some expats chose to move to France, looking at all the main perks that are most commonly experienced. One key positive mentioned is the overall improved quality of life, with almost half of the respondents mentioning it as their main motivation behind moving.

In the HSBC Expat Explorer report that, released earlier in 2016, France placed ninth out of 45 countries for the overall experience, and an impressive fourth place for quality of life – fairing far better than the UK.

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