Osborne: Let's celebrate effects of low inflation not fear them
Britain could experience negative inflation over the coming months without any significant risk to the economy, the Chancellor is expected to say.
In a speech to the Royal Economic Society, George Osborne will say the slump in the headline rate to just 0.5% is due to external factors - and that the benefits for consumers should be celebrated.
Bank of England Governor Mark Carney told ITV News that deflation in the UK is "possible," but is a risk that can be managed,
He was speaking after inflation fell to just 0.5%,which was welcomed by David Cameron as "fundamentally good news" for household budgets.
