The UK inflation rate as measured by the consumer prices index (CPI) has turned negative for the first time on record. Is this a concern or are we simply dipping our toes in deflationary waters?
The latest figures published by the Office for National Statistics (ONS) reveal UK CPI inflation over the year to April fell into negative territory for the first time on record. A number of factors, including last year's high oil price, have contributed to the fall, which was in line with economists' forecasts and followed two months with CPI stuck at 0%. This is the first time CPI has turned negative since official records began in 1996, though experimental data shows it was last negative over five decades ago, in March 1960. According to the ONS, the largest downward contributio...
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