For the first time since 1960, Britain witnesses fall in consumer prices

Economic Indicators Associated Press

Official figures show that Britain saw consumer prices fall in April for the first time since 1960.

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The Office for National Statistics says Tuesday that consumer prices were 0.1 percent lower than the year before. In the year to March, prices were flat.

According to the statistics agency, this is the first time since 1960 that prices have fallen based on its historical estimates. It says the largest downward contribution came from transport services, notably air and sea fares.

A sustained period of falling prices — or deflation — is a concern as it can weigh on economic activity if consumers put off spending and businesses fail to invest.

Most economists expect inflation to rise soon as last year's fall in the oil price falls out of the annual comparison.