Negative RPI pushes UK into deflation.

The Retail Price Index fell below 0% today meaning the UK is official in deflation. This doesn’t really mean much to most people but millions could be affected as RPI is used as a marker for private sector wage levels and the basis for rises in state pension payments and other benefits. (Oh dear, as if we need to hear more bad news)?

Deflation according to wikipedia is defined as a sustained, generalised fall in prices across the economy.

nationalstatistics

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