Britain’s inflation rate has turned negative, for only the second time since 1960 in September.
Annual consumer prices (CPI) fell by 0.1% after stagnating in
August, the Office for National Statistics said today.
Economists had forecast stagnation.
Prices last declined in April, which
was the first sub-zero reading since 1960.
However, the Retail Price Index remained positive; dropping from 1.1% to 0.8%.
What does this mean?
It means interest rates are not going to rise anytime soon, as I have repeatedly said on this site.