Negative interest rate debate becomes 'very real' as UK inflation drops to 0.8%

Office for National Statistics (ONS) figures released on Wednesday (20 May) show that CPIH, which also measures owner occupiers' housing costs, was 0.9%, down from 1.5% a month earlier, as the impact of lockdown affects goods prices across the economy. The largest drag on the 12-month rate, according to the ONS, was a fall in energy and fuel pump prices largely owing to the collapse in oil prices, which resulted in a 0.35 percentage point reduction in the rate from the housing, water, electricity, gas and other fuels sector. Meanwhile, rising prices for recreational goods partially of...