Rate of inflation falls again

THE Consumer Prices Index fell again in January to an all-time low of to 0.3%, the Office for National Statistics said.

Phil Gooding from the Office of National Statistics told the BBC that the fall in price of motor fuels is the biggest factor behind the falling inflation rate – it was 0.5% in December. There was also downward pressure from the prices of food, alcohol and recreational activities and services.

Bank of England Governor Mark Carney has already flagged-up the possibility that the economy could see deflation in the coming months.

Inflation as measured by the Retail Prices Index fell too,  to 1.1% from 1.6% the previous month, the Office for National Statistics said.