# UK inflation vanishes as figures show zero growth

UK inflation vanishes as figures show zero growth

Text size Aa Aa

Inflation, that once-feared scourge of sterling and the economy, has disappeared from Britain according to official statistics for February.

For the first time since records began annual inflation dropped to zero, and the bigger-than-expected decline indicated the only direction for consumer prices in at least the short term is down.

The pound dipped against the dollar as a result, and the forecast is for negative inflation growth for March.

Experts are discounting the risk of deflation in the short term, much less of a risk than in the neighbouring eurozone where deflation shows signs of becoming entrenched, and instead point to the positive effects on household disposable income.

Live