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British Inflation at Lowest-Ever Level

News, 14 February 2001

According to the UK government’s Office for National Statistics, the nation’s underlying rate of inflation fell to its lowest level since records began in 1976.

In a statement yesterday, the ONS reported that retail price inflation (excluding mortgage interest payments) sank 0.2% to an annual rate of 1.8% in January. A key factor was the fall in petrol prices. The headline rate, which takes mortgages into account, also fell by a similar margin, dropping to 2.7%, the lowest since last March.

The money manipulators were joyous at the news: "This is an incredibly soft figure. The UK has no problem with inflation. This leaves the door open for further [interest] rate cuts," said Deutsche Bank’s Ciaran Barr.

News source: Financial Times