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).
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.
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.