UK inflation rate remains one of the lowest among G20 countries
Annual inflation in the OECD area slowed to 0.4 per cent in April, according to the latest CPI figures.
The slowdown, from 0.6 per cent in March, was mainly driven by energy prices, which fell by 11.5 per cent, compared with a decline of 10.8 per cent in the year to March.
Food prices were also a factor; they fell from 1.9 per cent in March to 1.7 per cent in April. Excluding food and energy, the OECD annual inflation rate for April was 1.6 per cent, compared with 1.7 per cent in March.
The OECD trend has generally been downward since last this time last year, when inflation rates stood at 2.0.
This April, the UK had one of the lowest inflation rates among the seven major countries; in April, the CPI for all items was 0.1, compared to 0.8 in Canada, 0.5 in Germany and 0.6 in Japan. This is up slightly from 0.0 in March and February.
In other G20 countries inflation is much higher, reaching 16.4 in Russia in April.
The ONS have attributed the UK’s current low inflation to cheaper clothing and footwear. In theory it should boost living standards; wages have risen painfully slowly since the recession and low inflation should mean money goes further. But the reduction in real-terms income for the poorest in society will take many years to replace.
Ruby Stockham is a staff writer at Left Foot Forward. Follow her on TwitterLike this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.