Economists' reaction: UK 'lowflation' will prompt consumer spending boom

Inflation falling back to zero should lead to a further boost in consumer spending throughout the rest of the year, according to industry commentators.

This morning the Office for National Statistics revealed inflation fell back to zero in June, after climbing from zero to 0.1% in May. Lower clothing, food and fuel prices were the biggest downward contributors on the UK Consumer Price Index, and the core inflation rate fell to 0.8% - the lowest reading since 2001. Industry commentators react to the inflation fall and discuss what it means for consumer spending, interest rates and their latest forecasts. Ben Brettell, senior economist at Hargreaves Lansdown: "Inflation is back to square zero as the supermarket price war and summe...