The price of a basket of goods in the UK has remained exactly the same from 12 months ago, as official figures today showed 0 per cent year-on-year inflation in June.
The reading represented a fall from the 0.1 per cent inflation recorded in May, which was itself a rebound from the deflation experienced in April.
Figures from the Office for National Statistics showed the drop in June was due to a fall in the price of food and clothing, as well as lower air fares compared to the same time in 2015.
The figures are still being distorted by the lower price of oil, which also feeds through into the price of factors such as air fares and food, with the commodity trading at a much lower level then it was this time last year.
Samuel Tombs, senior UK economist at Capital Economics, said the figures suggested the UK was likely to experience another brief spell of deflation.
He said the recent decline in the cost of oil, which saw the value of a barrel of Brent crude fall from $64 (£41.40) to $56, will quickly filter through into lower prices.
However, he said there were “still no signs that deflationary pressures are spreading across the economy” and added “inflation should rebound towards the end of the year when the anniversary of the plunge in oil prices is reached”.
