article_snippet: Experts warned Britain is now just one month away from deflation as food and petrol prices continue to tumble.
article_snippet: Low inflation, and even deflation, over a short period can be good for the economy and boost family finances, but a continuous fall in prices is harmful.
article_snippet: Yesterday, Prime Minister David Cameron seemed unconcerned by predictions that prices would fall further, saying Britain did not ‘face the dangerous deflation that some other parts of Europe may potentially have a problem with’.
article_snippet: Economist Vicky Redwood, at Capital Economics, said: ‘The UK is now within a whisker of deflation.
article_snippet: Economist Vicky Redwood, at Capital Economics still think that deflation in The UK will be a “good” development, giving households’ incomes a welcome boost and supporting the economic recovery this year.
article_snippet: Economist Chris Williamson, at Markit, said: ‘Rather than being a concern, the drop in inflation is a boon to the economy, providing households with greater spending power at a time when pay growth remains frustratingly weak.
article_snippet: But Shadow Treasury minister Cathy Jamieson said Shadow Treasury minister Cathy Jamieson was external factors that had brought down inflation, rather than the Government’s economic policy.
article_snippet: Shadow Treasury minister Cathy Jamieson said: ‘A few months of falling world oil prices won’t solve the deep-seated problems in the economy.
article_snippet: At a time when the economy is increasingly unstable, the inflation figures are a reminder that we're on the right track – and that doing things differently would put it all at risk.