Fears the UK economy is heading for a period of deflation have increased after the inflation rate dropped to zero for the first time since records began.
Figures released by the Office for National Statistics (ONS) revealed a 12-month Consumer Prices Index (CPI) inflation rate of 0.0% in February, down from 0.3% the previous month. Economists had expected a drop to 0.1%. Core CPI also came in slightly lower than expected at 1.2%, down from 1.4%. With January's 0.3% figure having already marked a record low for CPI, and the eurozone already in deflationary territory, today's figure will add to unease over the way in which the domestic inflation rate has tumbled in recent months. Much of the UK CPI decline can be attributed to the ste...
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