5 Undervalued Income Stocks to Beat 4% Inflation

We reveal 5 undervalued income stocks that will help investors protect themselves against the higher inflation forecast

Karen Kwok 3 November, 2016 | 12:02PM
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Inflation will grow to 4% in 2017, four times higher than the current level, the National Institute for Economic and Social Research said on Wednesday.

Inflation will “accelerate rapidly” thanks to the “most striking feature” of the Brexit vote: the depreciation of sterling, the institute said. Sterling is now 20% lower than its value at the end of 2015.

The report predicted that inflation would not rise to the Government target of 2% until 2020. The NIESR said this expectation would keep the Bank of England from making any changes to its policy stance until the second half of 2019, when it would start tightening.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aviva PLC395.50 GBX0.48Rating
Centrica PLC58.78 GBX-1.14Rating
GlaxoSmithKline PLC1,420.80 GBX0.71Rating
Pearson PLC627.80 GBX-0.10Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk