UK inflation dropped to -0.1 percent in September, according to figures released today by The Office for National Statistics.
The Consumer Price Index was below the zero percent expected by analysts. A smaller than usual rise in the price of clothing, as well as falling fuel prices, contributed to the drop. The CPI rate equals that of April’s -0.1 percent figure, which was the lowest since 1960. It has remained at close to zero for most of this year.
The Retail Prices Index measure of inflation also fell to 0.8% in September, down from 1.1% in August.
The Bank of England said in its monthly statement last week that it was unconcerned about the current inflation rate and did not expect it to reach 1 percent until early next year. This has led to speculation that a rate rise will not take place until later than previously anticipated.
