UK Inflation Falls Back to 0%

The UK’s inflation rate fell to 0% in August, down from July’s rate of 0.1%, the Office for National Statistics (ONS) has said.

Inflation, as measured by the Consumer Prices Index, fell due to a smaller rise in clothing prices from a year ago and cheaper fuel prices, the ONS said.

CPI inflation has been almost flat for the past seven months.

Inflation has failed to take off due to a sharp fall in oil prices and a continuing supermarket price war.

Oil prices hit a six-and-a-half year low of around $42.50 per barrel in late August.

The ONS figures also showed that the Retail Prices Index (RPI) measure of inflation rose to 1.1% from 1.0% in July.

Via BBC News

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza