UK inflation drops to record low level

  • Inflation in Britain has fallen to 0.5% in December, its lowest ever level, thanks to falling global oil prices and the ongoing price war among UK supermarkets, as per media reports.

    The consumer price index or CPI has hit 0.5% just once before, in May 2000, and never dropped lower.

    In November, the inflation was 1%. Economists had predicted a smaller drop to 0.7%.

    Some experts believe that the country could well be heading towards deflation in the next few months.

    Tagged as: inflation, Britain, oil prices, price war, supermarket, CPI, deflation, business news