The UK economy is set to grow 2.8% this year, helped by CPI at zero and a lower oil price, according to the EY Item Club.
Central banks may resort to 'helicopter drop' measures to stave off the threat of deflation, according to Investec's Alastair Mundy.
The UK's headline inflation rate avoided negative territory in March but core inflation saw a surprise drop to its lowest level in nine years, latest figures show.
UK economic growth in the fourth quarter of last year was stronger than previously thought, according to the latest estimate from the Office for National Statistics (ONS).
Escaping the debt trap
As inflation in the UK hits zero for the first time on record, industry experts share their views on what this means for the UK economy and investors.
UK Consumer Prices Index (CPI) inflation continued its precipitous fall in February, dropping more than expected to hit zero for the first time.
Lower inflation, driven by a fall in oil prices, has helped the Office for Budget Responsibility (OBR) upgrade UK growth forecasts for 2015 and 2016 and given the government room to move on near-term borrowing.
Which way will the economy go?
Mark Carney has told MPs it would be ‘extremely foolish’ for the Bank of England to cut interest rates further in order to combat falling inflation.
Xavier Hovasse, manager of Carmignac’s Emerging Discovery fund, takes a closer look at opportunities for investors in China and India.
Monetary Policy Committee members voted unanimously to keep interest rates in hold this month, but potential divisions over the future path of rates have begun to emerge once more.
Inflation fell to 0.3% in January, the lowest level ever recorded, as price growth continued to slump on the back of falling oil prices.
M&G's head of retail fixed interest Jim Leaviss has said it may be time to invest in US inflation protection following the oil-related sell-off seen in recent months.
13 weird happenings for Friday the 13th
The Bank of England may have to resort to the interest rate cut that Governor Mark Carney alluded to in his Inflation Report speech this morning, according to some market watchers.
The Bank of England has said it is prepared to cut rates further and expand its quantitative easing programme should the current downward slide in inflation worsen materially.
Deflation puts governments on the naughty step
Sterling fell against the euro and the US dollar as the latest Monetary Policy Committee (MPC) minutes revealed a unanimous vote against hiking interest rates.
Indian equities stood out in Asian trading overnight after the Reserve Bank of India (RBI) announced a surprise cut to interest rates in order to combat falling inflation.
The sharp fall in the UK inflation rate is not cause for concern, Chancellor George Osborne will say in a speech later today.
Figures released this morning by the Office for National Statistics showed UK CPI inflation fell to a surprise 0.5% in December, the lowest level since May 2000. We round up the reaction from leading investors and economists.
UK consumer price inflation has fallen to a 15-year low of just 0.5%, driven by plunging oil prices.
A hawkish statement from the Federal Reserve has been perceived by markets as another step towards an interest rate rise, although it is unlikely to come before April 2015.