Inflation

The UK's main inflation rate has remained at 2.7% for the third month in a row, broadly in line with economists' expectations, despite steep rises in energy bills.

Deputy governor for Monetary Policy at the Bank of England Charlie Bean has said lower inflation next year should both support the mortgage market and consumer spending.

Legal & General is offering indexation on life insurance, critical illness and income protection products on a ‘pay as you go' basis, and giving advisers an up-lift in commission of 10% LIC for introducing business with an indexation option.

As the housing market continues to struggle and the Bank of England Base Rate remains historically low, Matthew Wyles asks how long it will take for the economy to recuperate following these testing times.