Britain: Inflation at zero as food prices fall

BRITAIN’S inflation rate dropped to zero in February, the first ever stagnation in prices since the data series began almost three decades ago. The slowdown in inflation from 0.3 percent in January was sharper than economists had forecast and marked the first zero reading since 1989. Based on constructed historical data, it’s the weakest since 1960, the Office for National Statistics said yesterday. The largest downward effect to the annual rate in February came from food and non-alcoholic drinks, furniture, household and computer equipment. Food and drink prices plunged a record annual 3.3 percent. There was a slight downward effect from petrol prices, which fell to an average £1.07 (R19.16) per litre last month from £1.083 in January. Bank of England governor Mark Carney forecasts that the inflation rate will drop below zero in the coming months. – Bloomberg