British inflation at all-time low

In January the British inflation rate fell to its lowest level since 1960, with consumer prices rising by only 0.3% in comparison with the same month last year.

The British statistics authority attributes this mainly to the low oil prices, but also to a sharp drop in food prices. Moreover, the German discounters Aldi and Lidl, who have triggered a price war in the United Kingdom, have also played a part.

The Bank of England boss Mark Carney had explained a few days ago that a short deflationary phase with a falling consumer price index was also possible. However, at the end of the year prices were also likely to rise again more distinctly.

In Germany the inflation rate fell to minus 0.4% in January.