The U.K. inflation rate dropped to zero in the year ending in June, offering a boost to consumers at a time of when household wages are growing.
The Office of National Statistics says Tuesday that the rate fell slightly — compared to 0.1 percent in the year to May — amid falls in in food and clothing prices, and rises in air fares last year.
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While low inflation is good in the short term, experts worry about the trend lasting too long. A downward price spiral hurts the economy, as people defer spending — particularly on larger items — hoping that it will become cheaper later.
The Bank of England has predicted inflation will pick up at the end of the year. The target is 2 percent.