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Inflation's down, wages are up so what's the UK's "key weakness"?
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. Jonathan Portes, Director at the National Institute of Economic and Social Research, says real wages have fallen by around 6% in recent years. 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.
01:17 minutes
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