Inflation fell back to zero in the year to the end of August, according to the Office for National Statistics (ONS), pushing out expectations of an interest rate rise again.
The ONS said the Consumer Price Index (CPI) fell back from the 0.1% recorded in July as clothing prices rose at a slower rate and fuel prices remained low. The FTSE 100 rose slightly in response to the announcement, after falling by around 1.1% in morning trading. Earlier in the month, the Bank of England's monetary policy committee voted to keep its base rate at 0.5%, leading its notes with a comment on the suppressed inflation rate. Rate hike Fidelity global economist Anna Stupnytska said the fall back to zero pushed out any rate hike expectations to 2016. "Near-term ri...
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