Deflation risks on the horizon: what it means for your savings and investments

With the energy price cap forecast to fall this year, inflation could also drop sharply - and we may start fearing deflation. But what would deflation mean for interest rates, and your savings, mortgage and investments?

White piggy bank on a domestic kitchen counter
(Image credit: Hispanolistic)

Households will be cheering that inflation has more than halved over the past year, and is set to fall further in 2024.

But as the price of goods and services tumbles, analysts are now starting to worry about the risk of deflation

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.