February 17, 2009
Deflation on the cards
Story link: Deflation on the cards
Everything in the news days seems to be the same, “the hardest times within 50 years”, seems to be a popular phrase.
Latest data suggest that the UK economy and the cost of living is at its lowest in 50 years, meaning that the UK is approaching deflation!
Politicians and analysts have warned that Britain is on the verge of deflation after economic data released this morning showed that living costs are rising at their lowest rate in almost 50 years.
Figures from the Office for National Statistics showed that the retail prices index, which includes mortgage costs, fell to just 0.1% in January following the recent falls in interest rates and cheaper fuel. This is the lowest RPI level since March 1960, and it is expected to enter negative territory soon.