UK inflation falls back to zero in June

UK CPI inflation fell back to zero last month, down from 0.1% in May, as the prices of clothing, fuel and food all fell.

The Office for National Statistics (ONS) revealed the Consumer Price Index was unchanged over the year to June 2015 due to the falling prices of consumer products and smaller rises in air fares, compared to a year ago. Food prices were down 2.2% while motor fuel is down 10.2% on the year. The CPI figure was in line with expectations and is likely to mean the Bank of England's Monetary Policy Committee will be in no hurry to raise interest rates earlier than expected in mid-2016. Governor Mark Carney has warned UK inflation is likely to remain low before rising towards the end of the y...