UK inflation back to zero

On the back of lower food and clothing prices compared to a year earlier, the UK inflation rate reported by the Office of National Statistics, has eased from 0.1% in May to a big zero in June. At this level we are flirting with the possibility of deflation, a negative figure, which the ONS reported for April, a modest  - 0.1%, the first in over forty years.

Good news for consumers but the movements are small enough not to cause any ripples at all in the wider economic pond, especially when the Greek financial crisis is once again taking centre stage.