First UK deflation since 1960


First UK deflation since 1960
The UK experienced deflation last month for the first time in nearly half a century, according to figures released by the Office of National Statistics (ONS) today.

The Retail Price Index (RPI) fell by 0.4 per cent in March, with a negative value not recorded since March 1960.

The key factors in the fall were the reduction in mortgage payments following the Bank of England's interest rates cuts, lower household bills as energy prices fell and cheaper shopping bills thanks to European imports picking up. Reductions in air fares also contributed to the fall.

The Consumer Prices Index (CPI), which the Bank of England's monetary policy committee uses to set inflation targets, fell to 2.9 per cent after February's surprising rise to 3.2 per cent.

Short term deflation is seen as a positive stimulant for a struggling economy, encouraging people to spend more money but longer term it can have catastrophic effects in eroding consumer confidence.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure