UK Inflation Rate Turns Negative Again

Inflation as measured by the Consumer Prices Index fell to -0.1% in September, official figures have shown, BBC reports.

The Office for National Statistics (ONS) said that a smaller than usual rise in clothing prices, and falling motor fuel prices, were the main contributors to the drop in the rate.

The CPI rate has been at or close to zero for most of this year. It was last in negative territory in April.

Most benefits will be frozen from April because of the latest data.

The annual uprating of some benefits, public sector pensions, and the state second pension, is linked to the September CPI rate.

So millions of people are unlikely to see any rise in these benefits, as is the case with most working age benefits, which are part of a freeze announced previously by the government. The state pension is protected and will rise by at least 2.5%.

Food prices fell by 2.5% in the year to September in the wake of continued supermarket price wars. This means that prices in the sector fell for the 15th month in a row.