UK inflation holds at record low of 0.0%

Fall in clothing and gas prices boosts disposable incomes as CPI measure stays at zero

Britain's inflation rate has held at its record low of zero, giving disposable incomes a boost and leaving the country on the brink of a period of falling prices.

The Office for National Statistics said inflation, as measured by the consumer price index, held at zero in March, unchanged from February, which was the lowest since comparable records began in 1989. Estimates from the ONS suggest it was the lowest reading since 1960.

Our plan for working people gets another boost today with good news for family budgets - Inflation at zero for second month in a row.

Related: UK inflation remains at zero - live updates

The UK just avoided deflation in March, but inflation could yet dip into negative territory at some point in the coming months ...

The indirect impact of lower energy prices will take a while to come through and so the core rate could drop further in the coming months, tipping the headline rate below zero. Even if the UK does narrowly avoid deflation, inflation is still likely to hover close to zero for most of 2015."

Continued low inflation is good news for the economy, particularly at a time when wage increases are modest and businesses are facing challenges ... If deflation is to emerge it should be short-term because of the strength of the UK's largest sector, the service sector, where inflation remains above 2%."

Zero inflation is a mark of the weak condition the economy has been left in by a failed economic plan. Stagnating prices are not a sound foundation for the strong and sustained pay rises that workers have been waiting years for."