We had inflation, we had deflation and now we’re back to unflation

Inflation rate falls to 0% again

The rate of inflation, how much the price of goods or services is rising, fell to 0% in June, new figures show.

It’s a state that shall be henceforth known as “unflation” and means the average cost of living stayed the same compared to the same month of the year before. It’s good news for consumers in the short term, but economists predict it could be harmful in the long term.

May’s inflation figures showed a 0.1% rise in inflation after a month of deflation.

“Inflation has continued its pattern of recent months, when prices have been very little changed on the previous year,” said Philip Gooding from the ONS.

“The headline rate for June has dropped very slightly on May, back to zero, thanks to small downwards effects from movements in clothing and food prices and air fares.”

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