British inflation rate falls to zero in Feb, lowest since records began

The British inflation rate fell to zero in February, the lowest reading since records began, taking a further step towards deflation, official data showed Tuesday.

Britain's consumer prices index (CPI) grew by 0 percent in the year to February 2015, down from the 0.3 percent in January, said the Office for National Statistics (ONS).

The main contribution to the slowdown came from price movements for a range of recreational goods, food and furniture and furnishings. There were no large upward effects to offset the change, said ONS.

In the year to February 2015, food prices fell by 3.4 percent and prices of motor fuels slumped by 16.6 percent, figures showed. The food and motor fuels groups in total reduced the CPI 12-month rate by around 0.9 percentage points, said ONS.

British consumer prices edged up by 0.3 percent in February 2015 from the previous month, and the core annual inflation rate, which exclude alcohol, tobacco, food and energy prices, rose 1.2 percent on year-on-year basis.

CPIH, an inflation gauge including consumer prices and owner occupier's housing costs, increased 0.3 percent in the year to February 2015, down from 0.5 percent of the prior month, data showed. Endit