Core inflation hits nine-year low as UK CPI remains at zero

The UK's headline inflation rate avoided negative territory in March but core inflation saw a surprise drop to its lowest level in nine years, latest figures show.

The Office for National Statistics revealed this morning that the Consumer Price Index stayed at the 12-month rate of 0%, thwarting fears inflation could turn negative. It follows the surprise drop to zero reported last month, down from a previous reading of 0.3%. While today's figure is in line with the majority of economists' expectations, the core inflation rate's fall to 1% - its lowest level since 2006 - was more of a surprise. It suggests the UK is battling, to an extent, with deflationary measures separate from those arising from the recent oil price slump. The drop in th...