Impact of falling oil prices on the UK economy

Impact of falling oil prices on the UK economy

1. The oil prices have fall 50% from the third quarter of 2014 until now

   • This fall have a significant impact reducing transport and other businesses costs
     • Lower oil prices help to reduce the cost of living
       • This have helped the UK economy to reduce its inflation to 1.2%
         • Which meet the Bank of England target of 2% +/- 1 inflation
           • This gives Western consumers more income to spend therefore, this might add to real GDP
         • This can be explained further to explain how inflation can effect the economy as a whole
     • Impact on oil consumers
     • This will boost both investment and employment (Pws, 2015)
   • Falling of oil prices is a good news for oil importers, such as the Western Europe countries
   • This can be an introduction for the presentation