Inflation falls to zero

Inflation fell to zero last month setting the UK on course for a period of falling prices for the first time in half a century.

Picture: PA Wire

The Consumer Price Index (CPI) measure of inflation dropped after recording 0.3 per cent in January, according to the Office for National Statistics.

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It was a sharper than expected fall and sets a new record low for CPI since comparable records began in 1989.

Inflation is expected to dip further in coming months. An experimental model created by the ONS suggests the last time it was negative was in March 1960, at minus 0.6 per cent.