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