The UK consumer prices in September went down 0.1% compared with the same month last year, according to the Office for National Statistics (ONS) of the country.
As a result, for the second time since 1960 there is indicated a deflation in UK. Prior to this, consumer prices fell in annual terms in April, by 0.1%.
Compared to August, prices in September also fell by 0.1%.
Analysts surveyed by Bloomberg, expected zero growth in prices both in monthly and in annual terms.
The CPI Core index, excluding food, alcohol, tobacco and energy prices, in September rose 1%, as in August. The experts forecasted an increase by 1.1%.
Data about deflation in the country will strengthen the confidence of market participants that the Bank of England is still far to increase the key rate. At the previous meeting, only one of nine members of the Monetary Policy (MPC) voted in favor of an immediate rate increase.
The Bank of England expects that the growth rate of consumer prices in the country will remain below 1% until the spring of 2016. Bank aims the inflation at 2%, and intends to reach this figure in the second quarter of 2017.
In September, prices for food, alcohol and tobacco fell 1.3% in annual terms, the price of fuel falling 15.6%. Clothing and shoes prices fell 0.6%, and the motor vehicles and auto accessories fell 1.8%.
However, medical goods rose in September by 1.7%, and housing by 5.2%.
Retail prices (RPI index) rose last month by 0.8% in annual terms, the minimum rate since November 2009. Especially the RPI index is used by British employers when negotiating salary. The difference in the dynamics of the CPI and RPI is associated with housing in the RPI, as well as different weights fares, insurance and gasoline prices.