The Guardian view on 0% inflation: a worrying sign of a feeble economy | Editorial
Zero. Zilch. Nada. Even those sent to sleep by bulletins from the Office for National Statistics will surely have been struck by the news that the consumer price index has fallen to 0%. Not only has this never happened before, no term exists to describe this situation. Inflation refers to rising prices; deflation, falling prices. The new nullity could perhaps be christened flation.
Whatever the name, the government would have you believe it's a good thing. "The right sort of price freeze," according to Treasury chief secretary Danny Alexander. And provided it doesn't last long, they're right. The halving of oil prices over the past year and the resulting fall in the cost of transport and food is good news for most Britons. It also comes in very handy for coalition ministers, who can deflect Ed Miliband's jabs about living standards. Even if wages are only crawling upwards, a fall in prices leaves more cash in voters' pockets. A foretaste of this tactic was served up by George Osborne in last week's budget, in which he boasted that "living standards will be higher in 2015 than in 2010". This supposed triumph is more rhetorical than real - and it surely won't resonate in the average household. But still, all's fair in love and election campaigns.
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