Inflation Below Zero For First Time In 55 Years (UK)

                            

The British economy has entered into negative inflation for the first time since 1960, according to today's figures from the ONS.

UK's annual rate of consumer price inflation (CPI)  fell to -0.1% down from 0% previously.  It is the first time that the CPI figures have been in negative territory since official records for the CPI index began in 1996.

However, according to the ONS, comparable estimates going back further indicate that is the first time consumer prices have showed deflation since 1960. 

Responding to the latest figures, Chancellor George Osborne told Sky News that this was not "damaging deflation" and insisted that though the government would remain vigilant to any risks that might arise and was "well equipped to deal with them if they did".

Bank of England governor Mark Carney warned last week that the central bank believed inflation could enter negative territory - albeit briefly.