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Inflation's down, wages are up, so what's the UK's 'key weakness'? (Saxo TV)

    Head of Economic Research Adam Memon was interviewed by Saxo Group TV on inflation and wages, Tuesday 15 February 2014. 

    British inflation's at a four year low and it's expected that for the first time since 2010, wages will rise quicker than prices. It's yet more good news but the UK is playing a long game of catch-up and there are still concerns about the stability of the recovery. 

    Data on Tuesday showed that consumer inflation dropped to 1.6% in March, down from 1.7% in February and comfortably below the Bank of England's 2% target.

    Adam Memon, Head of Economic Research at the Centre for Policy Studies, says it shows employment growth has been "quite good", but the challenge in the medium term is improving productivity; "it's the key weakness", he says. 

    See the video at the original link on the Saxo TV website

    Date added: Wednesday 16th April 2014