UK consumer prices flat for second straight month in March

The U.K. has narrowly avoided a drop in consumer prices, easing concerns of a so-called deflationary spiral that can hurt the economy.

Official figures Tuesday show that annual consumer price inflation in the U.K. was flat for the second straight month in March.

Many in the financial markets were predicting a negative inflation rate in the Office for National Statistics' report. An extended drop in prices can weigh on an economy if consumers delay spending on big-ticket items in hopes of bargains down the line or businesses fail to innovate and invest amid falling profits.

But many economists think the current subdued inflation environment is a boon to consumers as it's largely due to the near 50 percent fall in crude oil prices in less than a year.