Belfast Telegraph

UK moves out of negative inflation

Britain's dip into negative inflation is set to have lasted just a month, figures published today are expected to show.

The Consumer Price Index measure of inflation fell to minus 0.1% in April, the first time it has fallen below zero since 1960.

Figures for May published by the Office for National Statistics are forecast to show a positive reading of 0.1% - the first time it will have turned higher since October.

Vicky Redwood, chief UK economist at Capital Economics, said: "May's figures should show that deflation in the UK lasted for just a month.

"Admittedly, this would not mean that the risk of a prolonged period of low inflation has suddenly disappeared, but it is lower."

Prices have been held down by a supermarket price war and lower fuel costs amid a plunge in the oil price.

But the Bank of England said it expects CPI to pick up "notably" towards the end of this year as these effects fade.

Belfast Telegraph


From Belfast Telegraph