UK heading for negative inflation, Bank of England expected to warn

Inflation, which fell to 0.5% in December, expected to turn negative in coming months, as Bank prepares to cut forecasts in quarterly report

Britain will slip into deflation for the first time in more than half a century, the Bank of England is expected to say on Thursday, as the slump in oil prices further impacts the economy.

Inflation fell to 0.5% in December and is expected to turn negative in the coming months as a result of falling petrol and food prices.