...The UK consumer price index, which charts inflation in the last 12 months, dropped further to 1.6% in March, from 2% in December (when it met the BoE's target for the first time since 2009). The annualised rise in three- month average (3MA) earnings including bonuses was 1.7% in February 2014, a considerable improvement on the 1.2% recorded in December. The downward trend in inflation and upward trend in average earnings has led to an increase in purchasing power, which has been undercut in the last six years as real earnings dropping almost 10%. Additionally, unemployment significantly improved over the three months to February 2014, dropping to 6.9% (from 7.1% three months earlier), according to the Office for National Statistics (ONS). Combined with positive GDP growth since the beginning of 2013, the positive macro-economic developments outlined above have lifted consumer confidence to its highest level in three years, according to GfK's UK Consumer Confidence Index. With regard to...
