UK inflation turns negative for first time since 1960
LONDON: Britain’s annual inflation rate sank into negative territory last month for the first time in more than half a century, official data showed on Tuesday.
The rate hit minus 0.1 per cent in April, the Office for National Statistics (ONS) said in a statement, risking a period of deflation for Britain’s economy.
Prices were pushed into negative territory on the back of falling transport services — notably air and sea fares — and the earlier timing of Easter.
That was the lowest rate on record — since the data series began in 1996 — and comes after two previous months of zero inflation.
The ONS added that it was the first time that inflation has turned negative since 1960, citing comparable historic estimates.
An experimental data series created by the ONS indicated that CPI was last negative in March 1960, when it stood at minus 0.6pc.
The Consumer Prices Index (CPI) fell by 0.1pc in the year to April compared to no change in the 12 months to March, the ONS added.
British finance minister George Osborne, whose Conservative government won the election earlier this month, described the data as “good news” for families.
Published in Dawn, May 20th, 2015
On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play