On the eve of tomorrow's budget The Times reports that the UK went into deflation for the first time in 50 years:
"The country edged into deflation last month as the RPI (Retail Price Index) measure of inflation tumbled to -0.4 per cent from 0 per cent in February, official figures showed this morning.
This is the first time that RPI inflation, which includes housing costs and is used as a benchmark for UK wage deals, has turned negative since 1960."
As to what the budget will bring it is fair to assume that although the headlines will be "big", as Brown and Darling do what they do best namely "big it up" to the media, the reality will be uninspiring and dreary.
We have already witnessed the headlines wrt Lord Mandy's "electric" car subsidy of £5K. All very nice, but this vehicle at best will not be available for another 5 years.