Bulletin

UK falls into deflation

The Office for National Statistics revealed that inflation on the consumer prices index fell to -0.1% in April, following zero inflation in February and March. This is the first time Britain has dipped into deflation since 1960. Economists had forecast that inflation would remain at zero in April. A supermarket price war and cheaper petrol prices continued to push down on the headline inflation rate, despite the recent rebound in oil prices. Smaller increases in air fares due to the timing of Easter also contributed to the fall. However, most economists expect May's inflation rate to limb backup to zero or O.1%. Food prices fell 3% year-on-year in April, according to the ONS, while diesel and petrol costs fell by 12.3%. The Bank of England believes inflation will rise to 2.1% by the end of 2017, while the Office for Budget Responsibility does not believe inflation will reach the BoE's 2% target until 2019.

 

Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.

Other Articles

GoJumpIn

The sky is seemingly the limit for a company which has got us all jumping with excitement as they secure a Santander funding deal to make…

Bulletin
Food and drink exporting opportunities in the UAE

Richard Cuda, Director - Strategic Banking Alliances, International, Santander UK says UK food and drink manufacturers should seriously…

Bulletin

According to DIT, of the 2.5 million businesses registered in the UK, an estimated 360,000 who have an exportable product or service…

Bulletin
GoJumpIn

The sky is seemingly the limit for a company which has got us all jumping with excitement as they secure a Santander funding deal to make…

Bulletin
Food and drink exporting opportunities in the UAE

Richard Cuda, Director - Strategic Banking Alliances, International, Santander UK says UK food and drink manufacturers should seriously…

Bulletin

According to DIT, of the 2.5 million businesses registered in the UK, an estimated 360,000 who have an exportable product or service…

Bulletin

Where Next?