Article 5EKC Falling energy and food prices push UK towards deflation

Falling energy and food prices push UK towards deflation

by
Gwyn Topham
from Economics | The Guardian on (#5EKC)

Analysts expect inflation is likely to have fallen to 0.1% with some predicting that figures could show a negative reading

The British economy is heading for a spell of deflation as official figures are expected to show that inflation dropped to 0.1% last month.

Analysts expect the UK's consumer price inflation (CPI) figure for February, which is released on Tuesday, to fall from 0.3% in January, driven by lower energy and food prices. Some economists think the monthly update from the Office for National Statistics could already show deflation.

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