According to ONS (Official National Statistics) the CSI has released news referring to inflation of about 0% as the costs of food drops further. It is said that the fall is from a 0.3 % last January to a 0% in February. The said figures set a new record from CSI since 1989. On the other hand, the office of National Statistics said that it is the second on their record since 1960 at -0.6% according to unofficial estimation. The ONS also said that the consumer price is unchanged a year earlier as foods and other good falls further to outweigh the rising pressure.
The falls from other goods and non-alcoholic drinks locked up because of the fall of oil worldwide of about 60%. The experts also believe that the fall down will head further as the energy bills also drops. The still on the cost of living has arrived at the time when the annual income of workers has risen to 1.8 % annually. This is good news for those individuals in the working force that has experienced 6 ears of no wage increased. Though the Bank of England believes that this will help a lot of people in the country as well as the UK economy, they are vigilant in monitoring the measurement because they fear that the negative prices seen in the forecast could bring about entrenched in the medium term.
There is a big possibility that the consumers and other business entity will delay the purchase of goods in hopes that these other products might fall cheaper on the coming days and months. On the other hand, the bank believes that the improvement in the wages as well as the record of employment will have a great impact on maintaining the spending of the consumers. The inflation of about 0% in UK will also benefit a lot of people who are into guarantor loans because they will have a greater chance for approved loans since the economy is displaying a good standing.
The unexpected inflation on the scale in February will draw back the chance of proper timing on the possible interest rate increase that is currently penciled in the market for 2016 and putting less pressure over the pound.
This inflation could mean a good and bad news. It is quite good news for a lot of consumers but this could also mean something negative to some businessmen and the economy as well. But UK economist believes that they are on it.