3 share ideas for lower inflation

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With inflation expected to fall further despite the recent surprise, we look at 3 share ideas that could still benefit.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 2 February 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Even with December's bump in inflation, it’s still fallen massively from its 11.1% peak in October 2022. This has been a welcome step in the right direction, but it might be a while before things are back in line with central bank targets.

Lower inflation means that costs are coming down for businesses. But the higher interest rates and inflation staying sticky in some corners, means this isn’t a free pass for companies to easily inflate their margins this year.

The longer inflation lingers, the longer the Bank of England might need to keep interest rates higher, running the risk of a recession. Here are three companies that we think could benefit in the current economic environment.

Investing in an individual company isn’t right for everyone because if that company fails, you could lose your whole investment. If you cannot afford this,