Inflation rate in the United Kingdom remains at 0.3{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} during the month of February, as was the case the month prior.

Increasing food prices, particularly vegetables, is believed to be a contributing factor.

Inflation per annum has now been less than the Bank of England’s 2{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} target for two years, and last year it was nil.

The Bank said last month that it expected inflation to be below 1{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} during 2016.


Nevertheless Government borrowing has dropped less than expected in February, coming in at £7.1bn, according to reports by the ONS.

That brings the total deficit for the 11 months of the year so far to £70.7bn, as against the chancellor’s full-year target of £72.2bn.

The ONS said the biggest downward pressure on the inflation rate came from the transport sector, with price changes for items such as road passenger transport, second-hand cars and bicycles.

Toothpaste and other personal care products also saw a fall in price.

However, increasing prices for vegetables and dairy products including milk, cheese and eggs made up for those declines.


Source:  BBC Business News