Figures released by the Office of National Statistics (ONS) for the month of September, show a fall in the inflation rate to - 0.1%. This is negative inflation or deflation.

Lower fuel prices for the month, accompanied by supermarket food discounting, have caused a very small but welcome downward movement from nil inflation to this level.

With wage levels rising the overall picture is good for the UK consumer and should stay that way for sometime, though the overall view is that inflation will go higher but nowhere near the Bank of England target level of 2%.

The collapse in oil prices has helped UK Inflation enormously, feeding through to pump and general consumer energy costs and a spike upwards could spoil the party. However, oil analysts feel there is a current global oversupply that will keep prices low, well into next year and most of the recent attempts to take fuel prices higher have failed.