Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK inflation rate remains at 0%


The UKs inflation rate stayed at 0% in March, according to official figures from the Office of National Statistics.

The 0% inflation rate means that the cost of living is now roughly the same as it was in March 2014. The Consumer Price Index (CPI), which measures inflation, recorded an unchanged rate from February thanks to a rise in petrol prices. Food prices fell by 3.2% annually, and clothing and footwear prices fell for the first time since the CPI started recording in 1996.

The 0% figure is the lowest since records began in the late 1980s. Estimates by economists believe it may be the lowest figure since the 1960s. The CPI figures leaves the Bank of England way below their 2% target for inflation.

Fallen prices may have benefitted households and fallen oil prices may have had a positive effect on businesses. The news was welcomed by Chancellor George Osborne, who tweeted:
“Our plan for working people gets another boost today with good news for family budgets - Inflation at zero for second month in a row.”

Vicky Redwood, chief UK economist at Capital Economics said:
“The UK just avoided deflation in March, but inflation could yet dip into negative territory at some point in the coming months.
“The indirect impact of lower energy prices will take a while to come through and so the core rate could drop further in the coming months, tipping the headline rate below zero. Even if the UK does narrowly avoid deflation, inflation is still likely to hover close to zero for most of 2015.”

Need Financial Advice?

If you have any personal finance questions related to this news article, please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details