UK inflation rate falls back to 0%
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The UK inflation rate fell back to 0% in June after rising to 0.1% in May, according to official figures released today.
A fall in clothing and food prices were the main contributors to the change in the rate along with smaller rises in air fares than a year ago, the Office for National Statistics (ONS) said.
Rain Newton-Smith, director of economics at the Confederation of British Industry (CBI), said: “Price inflation remains elusive. While this is likely to persist in the coming quarter, inflation should rise relatively swiftly from the end of 2015, as the effect of past falls in oil prices fades.
“Inflation of below 1% over the rest of this year should give the MPC enough breathing space to leave interest rates unchanged at least until early 2016.”
Earlier this year, in April, inflation dipped below 0% for the first time since records began in 1960, down to 0.1%.
