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UK slips into deflation for the first time since 1960 | |
(about 1 hour later) | |
Britain has slipped into deflationary territory for the first in more than 50 years. | Britain has slipped into deflationary territory for the first in more than 50 years. |
The Consumer Price Index - the official measure of inflation - fell by 0.1% in the year to April 2015, according to the Office for National Statistics. The measure stood at 0% in March. | The Consumer Price Index - the official measure of inflation - fell by 0.1% in the year to April 2015, according to the Office for National Statistics. The measure stood at 0% in March. |
This means that the price of food, alcohol and clothing was cheaper last month than it would have been a year ago. | This means that the price of food, alcohol and clothing was cheaper last month than it would have been a year ago. |
It's the first negative reading of the CPI since 1960. | |
Downward pressure came from falling costs of travel, particularly air and sea transport because Easter fell slightly earlier in March this year. | Downward pressure came from falling costs of travel, particularly air and sea transport because Easter fell slightly earlier in March this year. |
A problem could arise, however, if savvy shoppers decide to put off spending believing prices will drop further, sending the economy into a negative spiral. | A problem could arise, however, if savvy shoppers decide to put off spending believing prices will drop further, sending the economy into a negative spiral. |
So far there is little evidence to suggest that consumers are delaying purchases and Bank of England policymakers, who have an inflation target of 2%, have said the central bank has the tools at its disposal to address the issue if needed. | So far there is little evidence to suggest that consumers are delaying purchases and Bank of England policymakers, who have an inflation target of 2%, have said the central bank has the tools at its disposal to address the issue if needed. |
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