UK Inflation at 0% in February 2015

gosborne

 

HM Treasury has confirmed that inflation fell from 0.3% in January 2015 to 0.0% in February 2015. Suppressed oil prices and food costs are thought to have caused what is the lowest inflation figure on record.

The low level of inflation may have a short-term advantage of giving consumers more money to spend than they expected but there is the potential fear of deflation where consumers and businesses delay purchasing goods and services in anticipation of price cuts.