UK INFLATION IS AT ZERO
The UK is now hovering right on the edge of technical deflation, with prices actually falling. Economists had expected inflation to fall to +0.1% today.
The actual result is the lowest figure since
according to the Office for National Statistics. The figure now hasn't been at 2%, which is the Bank of England's target, since December 2013.
The Bank of England's chief economist Andy Haldane made a speech last week in which he suggested that UK interest rates might actually have to fall - contrary to expectations that they will rise in the next 12 or 18 months.