Inflation rate falls to 0.5% - even lower than predicted!

13 January 2015

In December, the inflation rate fell to its lowest since 2000, largely due to decreasing oil, fuel and electricity prices. The Office for National Statistics revealed energy, transport and food prices had dragged the inflation rate down. The price of car fuel alone dropped by 10.5% in the year up to December.

Businesses that have high input costs as a result of the expensive fuel prices in the past will be relieved at the news.  Haulage, transport and logistics companies will be the ones that benefit most from the drop in fuel prices and the low inflation rate as their own costs will drop too. 

The very low inflation rate also means wages are growing faster than prices. As for interest rates, it’s highly unlikely the government will raise interest rates this year.

Great news all round!