The Office for National Statistics (ONS) has announced today that the Consumer Price Index (CPI) measure of inflation has fallen from 0.3% in January to 0% in February.
The Consumer Price Index is the official measure of inflation of a core basket of goods and services in the UK and is chosen to reflect the changes in society’s buying habits.
CPI is at a record low and hasn’t been this low since records began in 1989. The main contributors to the fall are thought to be the drop in food and non-alcoholic drinks prices seen as a result of the supermarket price war and falling price of world oil costs. Economists have predicted inflation to fall further over the next few months as many cuts to energy bills are seen.