UK inflation hits zero for first time

UK Consumer Prices Index (CPI) inflation continued its precipitous fall in February, dropping more than expected to hit zero for the first time.

Figures released by the Office for National Statistics (ONS) this morning revealed a 12-month CPI inflation rate of 0.0%, down from 0.3% in January. Economists had expected a drop to 0.1%. Core CPI also came in slightly lower than expected at 1.2%, down from 1.4%. With January's 0.3% figure having already marked a record low for CPI, and the eurozone already in deflationary territory, today's figure will add to unease over the way in which the domestic inflation rate has tumbled in recent months. Much of the UK CPI decline can be attributed to the steep drop in oil prices, a disinf...