The Office of National Statistics came up with some great figures about zero inflation and maybe deflation being just around the corner. If you don’t know, deflation is a reduction of the general level of prices.
With the latest figures, a typical basket of products that cost £100 a year ago cost £100 today too – so that’s good as we understand better what we can get for our money. In the past year, however, food prices have fallen by 3.2 per cent and the cost of petrol by 13.7 per cent.
While the cost of clothing and gas prices pushed inflation down, there were also rises in petrol prices and small increases in food from February to March this year, so we are not getting negative inflation yet. We may get negative inflation (deflation) …
