The Retail Price Index (RPI) fell to an annual rate of 0.1% in January, giving rise to fears of deflation.
Despite the fall, the cost of living as experienced by those who inhabit the real world (as opposed to the statisticians' virtual reality), feels uncomfortably high.
Power and gas prices have risen significantly over the last year, as have food prices. This year's council tax rises will also be inflation busting, averaging around 4%-5%.
Low "inflation" or not, the actual cost of living remains ruinously high for many families at the moment.