'No need for alarm': Industry reacts to UK's slide into deflation

The Office for National Statistics this morning revealed UK CPI inflation turned negative for the first time on record, but key industry figures suggest this deflationary spell will be temporary.

UK CPI inflation fell to -0.1% in April as the recent slump in the oil price continues to put deflationary pressures on the UK economy. The figure was in line with economists' forecasts, after two months stuck at the 0% mark. This is the first time CPI has turned negative since official records began in 1996, though some experimental data series show it was last negative over five decades ago, in March 1960. The Bank of England said in its Inflation Report last week that CPI should drift upwards in 2015, and industry commentators agree a deflationary period will be short-lived. Here a...