The Office for National Statistics (ONS) have released the news that inflation has fallen from 0.5% (December 2014) to 0.3% and is at its lowest since 1960.
But why?
The news comes as a result of continuously decreasing fuel prices throughout the year so far, leading to a supermarket fuel war following the reductions in global crude oil prices. The news on lowered inflation is also accompanied by an overall increase in after-tax wages – news which the government and workers alike will welcome in light of recent years of economic austerity.
Road users too will welcome the news, as lower fuel costs go hand in hand with increased personal income. In recent years, fuel costs have hit the headlines repeatedly as wholesale crude oil prices soared and forecourt petrol and diesel prices followed suit. Since the start of the supermarket fuel price wars at the start of the year, there has been much speculation as to whether the much desired £1 per litre price will be reached. Some petrol stations throughout the country have been able to run £1 per litre promotions and major supermarkets have been able to offer discounts and promotions which have brought fuel prices close to that mark. However, a permanent £1 per litre price is deemed unlikely by many industry experts.