The economy moved closer to deflation in February as headline CPI inflation fell to zero. In principle, falling prices could undermine the recovery as consumers defer spending. But, deflation is unlikely to become entrenched and recent retail sales and confidence data are encouraging.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services