UK inflation rate stays negative, as Carney warns it could take two years to reach 2% target

Further setback for those hopeful of interest rate rise

The inflation rate for October has remained negative at -0.1%, as measured by the consumer prices index (CPI), the Office for National Statistics has said.

Bank of England Governor Mark Carney has said it could be two years until inflation regains its 2% target the bank aims at maintaining.

The news will be a further setback to those anticipating an interest rate rise, with economists now saying any changes will now be well into the next year.

According to the Office for National Statistics, higher prices for clothing and footwear and a range of recreational goods were offset by downward price pressures for university tuition fees, food, alcohol and tobacco, resulting in no change to the overall rate of inflation.

ONS statistician Richard Campbell said: “This is now the ninth month running that CPI has been at or very closer to zero.”

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