The main measure of UK inflation turned negative in April for the first time on record, with the rate falling to -0.1%.
It is the first time Consumer Price Index (CPI) inflation has turned negative since 1960, based on comparable historic estimates, the Office for National Statistics said.
According to the Guardian, the fall in living costs will be welcomed by many as it means workers’ wages go further, after years when pay was falling in real terms. But for savers it means interest rates will remain low and there are also warnings that negative inflation is a symptom of underlying weakness in Britain’s economic recovery .
The Bank of England governor Mark Carney said he expected inflation to remain very low over the next few months, however he has added that “over the course of the year, as we get towards the end, inflation should start to pick up towards our 2% target”.