First negative inflation for more than half a century

The Chancellor George Osborne has welcomed the latest inflation figures, saying the subsequent low prices have been 'good for families.'

ITV News political correspondent Emily Morgan reports.

The Prime Minister has reacted to the latest inflation figures which showed the CPI has dropped below zero for the first time in more than 50 years.

Writing in Twitter, David Cameron said it would lead to "more financial security".

Governor Mark Carney has said people should 'enjoy the low inflation while it lasts' as the Bank of England will bring inflation up to the 2% target by the end of the year.

The Bank of England expects inflation to "notably" rise again later this year after the latest figures showed the UK had entered deflation for the first time in 50 years.

Reacting to the news, the Bank said the figures were in line with its projections but that the economy would recover as the effect of lower oil and food prices fades.

Today's figures showed "core" inflation excluding volatile energy, food, alcohol and tobacco prices was also subdued. At 0.8% in April, it was at its lowest level since March 2001.

Food prices fell 3% year on year in April, the fourth month of deflation at around that level - an unprecedented run of prices falling at such a pace in the sector.

Fuel prices rose on the month, with a litre of petrol 2p more expensive than in March, meaning its downward pull on the year-on-year rate was smaller than before.

Britain is not facing "damaging deflation" and is well-equipped to stave off the risk of this happening, George Osborne has said.

The Chancellor made the comment after the latest figures showed that consumer price inflation fell below zero in March.

"We should not mistake this for damaging deflation," Osborne said in a statement, adding that Britons should welcome the lower cost of living driven by a fall in oil prices since last year.

"Of course, we have to remain vigilant to deflationary risks and our system is well equipped to deal with them should they arise," he said.

Inflation turned negative for the first time in more than half a century in April, official figures showed today.

The Consumer Price Index (CPI) measure of inflation dipped to minus 0.1%, according to the Office of National Statistics (ONS).

It is the lowest rate on record and comes after two previous months of zero inflation.

Estimates of past CPI rates suggest it was last negative in March 1960 when Harold Macmillan was prime minister and Dwight Eisenhower was in the White House.

ITV News Business Editor Joel Hills and Consumer Editor Chris Choi react to the news:

The rate of Consumer Price Index (CPI) inflation fell to minus 0.1% in April, from 0% in March, official figures showed today.