UK reaches deflation as prices drop to -0.1%
The UK consumer price index (CPI) has turned negative to -0.1% yoy as of April 2015, according to the latest data provided by the Office for National Statistics (ONS).
The data mark a new record, it is the first time since official records began in 1996 and the first time since the 1960’s based on comparable estimates that UK inflation has turned negative.
According to the ONS, the fall in consumer prices has been more pronounced than usual due to a -13% drop in transport prices because of the timing of Easter, which fell on March in 2015 and on April in 2015. The yoy inflation rate as of March 2015 was at 0.0%.
The Bank of England currently expects inflation to rise around the turn of the year, it forecasts that it will return to its 2% target within two years.