The month of May marked the end of the UK's brief spell of negative inflation, but advisers and investors are being warned to beware the result.
The FTSE 100 index fell sharply on Tuesday in its worst day of 2015 so far, as energy stocks plummeted on the back of further falls in the oil price.
The Bank of England has said it is prepared to cut rates further and expand its quantitative easing (QE) programme should the current downward slide in inflation worsen.
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Royal Dutch Shell is planning to slash its spending by $15bn over the next three years, following a collapse in the oil price.
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BP group chief executive Bob Dudley is expecting oil to remain at current low levels for up to three years, leading to job losses and falling investment in the oil sector.
Marcus Brookes, head of multi-manager at Schroders, has become more bullish on US stocks, as he expects falling oil prices to boost the jobs market still further.