First Time Since 1960: UK inflation rate falls below Zero

According to the latest data, consumer price inflation in the UK fell into negative zone in April for the first time since records started.

The Office for National Statistics (ONS) report says the rate of consumer price inflation tumbled to a seasonally adjusted -0.1% last month (April), from 0.0% in March.

In view of comparable historic estimates, it is the first time Consumer Price Index (CPI) inflation has turned negative since 1960, the ONS statement said.

As understood the statement further deeply, the biggest contribution to the fall came from a drop in air and sea fares.

As latest reports indicate, the Bank of England Governor will now need to write a statement to the Chancellor of the Exchequer, George Osborne, as swelling is more than a rate point beneath the central bank’s target of 2.0%.