Article 5BQRE Why low inflation is worrying sign of UK's poor economic health

Why low inflation is worrying sign of UK's poor economic health

by
Richard Partington Economic correspondent
from Economics | The Guardian on (#5BQRE)

Analysis: lower prices may have been welcomed by consumers but also reflect tough period

Britain has often had a problem with inflation. But far from the old enemy of past decades, when galloping price increases served as a pernicious tax on the poorest households, today inflation is worryingly low.

The annual rate fell in November to just 0.3%, among the lowest levels since 1989. During the coronavirus pandemic, lower prices will have been gladly welcomed by hard-pressed consumers. But the low inflation rate also reflects a difficult period for the UK economy, and for retailers in particular.

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