Inflation is not dead. It's still a big risk for your money | Patrick Collinson

It may have tumbled to 0.5% this week but economists warn that it may not last

This week we saw some rare good news on the economic front; inflation tumbled to only 0.5%, its lowest rate in four years. Savers can even earn real" interest, with National Savings offering instant-access accounts paying 1% interest. Don't laugh at the paltry amount - it has been a long time since they have come anywhere near to beating inflation.

How long will the good news last? It's one of the thorniest questions vexing economists and money managers alike. Half think that huge job losses, a deep recession and vast spare capacity in the global economy will see inflation banished for years. The other half thinks the trillions of dollars, euros and pounds from pandemic-inspired government stimulus packages must, with almost mathematical inevitability, result in higher inflation.

Related: UK inflation falls to 0.5% on back of cheaper petrol and toys

Wages and prices are likely to remain depressed as job losses cascade through the economy in the second half of 2020