UK Inflation Rate Falls

The UK Inflation Rate Falls

UK Inflation Rate Falls according to the rate of UK Consumer Prices Index inflation fell to 0.3% in January, its lowest level since records began.

Cheaper petrol and lower food prices – helped by a supermarket price war – cut the rate from 0.5% in December, Office for National Statistics figures show.

UK Inflation Rate Falls decreasing bar graph

UK Inflation Rate Falls

January’s figure is the lowest rate of CPI inflation since estimates of the measure began in 1988.

The Bank of England said last week that inflation may temporarily turn negative in the spring.

ONS statistician Phil Gooding said average petrol prices had fallen on the month, as had prices for foodstuffs such as milk and fruit, while games, toys and hobbies had also become cheaper.

Martin Beck, senior economic adviser to the EY Item Club, said price cuts recently announced by the “big six” energy suppliers should help lower domestic energy costs, which could help lower inflation.

January’s figure is the lowest rate of CPI inflation since estimates of the measure began in 1988.

The Bank of England said last week that inflation may temporarily turn negative in the spring and it is something that they and a lot of other people will be keeping a close eye on.