Roundup: British CPI down to a record low in Jan.

The Britain's consumer prices index (CPI) fell to 0.3 percent in the year to January 2015, reaching a record low, data from the Office for National Statistics (ONS) showed Tuesday.

The inflation rate down from 0.5 percent in December 2014, down to the lowest level since CPI records began.

Last week, the Bank of England forecast the British inflation would fall further, potentially turn negative in the spring.

Falling prices for motor fuels and food were the main contributors to the slowdown in the rate of inflation. Petrol is now at its lowest price since November 2009 and diesel since February 2010, said ONS.

However, smaller price falls than a year ago for clothing partially offset the slowdown.

CPIH, an inflation gauge include consumer prices and owner occupier's housing costs, increased 0.4 percent in the year to January 2015, down from 0.6 percent a month previous, data also showed.

"CPI inflation reached a record low in January and we think that it is more likely than not that inflation turns negative soon," said Paul Hollingsworth, Britain economist at Capital Economics.

"But with few signs that low inflation is becoming ingrained, the Britain's period of deflation should be of the good sort," said Hollingsworth.

Martin Beck, senior economic adviser to the EY ITEM Club, said: "With today's producer prices data suggesting that the drop in oil prices is continuing to sharply lower production costs throughout the supply chain."

Beck expected core inflationary pressures to remain well contained, given the large degree of spare capacity in the economy.

"The Bank looks set to wait until early 2016 before raising interest rates and is likely to remain true to their promise of making any subsequent increases gradual and limited," said Beck. Endit