Tuesday, 24 March 2015

UK inflation rate falls to zero in February

A stall worker bags up fruit for a customer at a market in Soho, central London

UK inflation rate fell to 0% in February, the lowest since records began, official figures show.
Lower prices for food and computer goods helped to cut the rate from 0.3% in January, official figures show.
February's figure is the lowest rate of Consumer Prices Index (CPI) inflation since estimates of the measure began in 1988.
The drop in the CPI measure was sharper than many analysts had expected, with most expecting a rate of 0.1%.

Deflation expectation

Ben Brettell, senior economist at Hargreaves Lansdown, said UK "took another step towards deflation" in February.
"It looks likely the rate will drop below zero at some point in the coming months, and hover around zero for most of the year," he said.

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