The inflation rate has turned negative for the first time since 1960 according to the latest figures published by the Office for National Statistics where the UK Consumer Prices Index (CPI) which showed it falling to minus 0.1% in April.
The fall, which is largely attributed to a drop in air and sea fares, was predicted by the Bank of England but Chancellor George Osborne has said the fall in inflation was temporary:
“We should not mistake this for damaging deflation …. But we have to remain vigilant to deflationary risks and our system is well equipped to deal with them should they arise.”
The positive employment trends seen over the last year and a half continued during the three months to March as UK employment rate rose to 73.5%, higher than at any point since at least 1971.
The unemployment rate fell to 5.5%, the lowest since mid-2008.
Average earnings, excluding bonuses, rose by 2.2% on a year earlier, up from a rise of 1.8% in the previous month and the strongest growth since mid-2011.
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