UK inflation figures for February came in just below expectations, at precisely zero.
The UK is now hovering right on the edge of technical deflation, with prices actually falling. Economists had expected inflation to fall to 0.1% today.
The core inflation figure, which strips out the effect of volatile price movements like energy and food, came in at 1.2%, down from the 1.4% seen in January.
The Bank of England’s chief economist Andy Haldane made a speech last week in which he suggested that UK interest rates might actually have to fall — contrary to expectations that they will rise in the next 12 or 18 months.