Economics

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.

The price of a barrel of Brent crude oil has dropped to below $46 in early trading, a fresh six-year low, as the commodity's collapse showed no sign of slowing down.

Nine challenges facing the eurozone

Tesco shares rose as much as 15% today after the retailer announced plans to save £1bn, prompting a wider rally for the troubled supermarket sector.

JPMAM's market strategist Stephanie Flanders has said she expects the ECB to act imminently to shore up the economy after the eurozone fell into deflation in December.

The eurozone slid into deflationary territory in December for the first time in five years, according to preliminary figures released today.

New documents show the Bank of England was seemingly unaware of the impending financial crisis in the weeks prior to its emergence.

The FTSE 100 has dropped sharply again this morning as fears over significant falls in the oil price and other macroeconomic issues weighed on stocks.