The UK inflation rate drop to zero in February from 0.3 percent in January, according to the Office for National Statistics. Lower prices for food and computer goods were a main driver behind the country’s lowest-ever CPI reading. The drop surprised many analysts who were predicting a rate of 0.1 percent.
“Despite inflation dropping to zero, it is unlikely we will see falling prices for a prolonged period, particularly as the pressure from lower oil prices fades,” said Rain Newton-Smith, director of economics at the business lobby group CBI. “With the Monetary Policy Committee still alert to the risk of very low inflation becoming entrenched, a rise in interest rates anytime soon seems off the cards.”
