UK: Inflation slides to 4.5 percent in October

LONDON (AFP)


… World oil prices have plunged by around two thirds in value since striking record highs above 147 dollars per barrel in July, as traders worried that a global economic slowdown would sap demand for energy.

Jonathan Loynes, chief European economist at the Capital Economics consultancy in London, said the British economy was on a deflationary path.

“October’s sharp fall in UK CPI inflation from 5.2 percent to 4.5 percent is the first step along a road that is likely to end in the first bout of deflation in the UK economy in almost half a century,” Loynes said.

AFP