UK sinks further into deflation

The Retail Price Index (RPI), which includes housing costs, fell from -0.4% to -1.2%, the biggest drop since records began in 1948, the Office for National Statistics (ONS) says. Meanwhile, the Consumer Prices Index (CPI) fell to 2.3% from 2.9% in March, its lowest annual reading in more than a year. Following March's RPI figure, the first negative reading since 1960, April's decline was larger than many experts had predicted. The largest downward contribution to the RPI came from mortgage interest payments following March's half point decrease in the Bank rate from 1% to 0.5%. Furt...