Low inflation not a threat, says George Osborne

"We should not confuse this welcome news with the threat of damaging deflation that we see in the eurozone," he will say in a speech, the BBC reports. The speech comes a day after official figures showed the UK inflation rate had fallen to 0.5% in December - its lowest rate since May 2000. Economists have warned the fall means an outright drop in prices is possible. Mark Carney, the Governor of the Bank of England, told the BBC after the figures came out that: "We will expect it to fall further, and inflation to continue to drift down in the coming months." In a separate interview,...