The European Central Bank is under growing pressure to step up support for the eurozone’s flagging economy after the bloc slipped back into negative inflation in February.
The level of inflation poses a risk to the UK economy, but not in the way that you might think.
The City of London’s most vocal “bear” has warned that the world is heading for a financial crisis as severe as the crash of 2008-09 and prompt the collapse of the eurozone.
Inflation has reached a trough, at least for now.
The UK’s inflation rate is expected to have remained in negative territory when official figures are released on Tuesday, leaving the Bank of England in little hurry to start raising interest rates.
Inflation in Britain has turned negative for the second time this year, easing pressure on the Bank of England to raise interest rates from their record low.
Sharp falls in petrol prices are expected to have pulled UK inflation back down to zero in August, economists predict ahead of the latest official figures today.