Skip to main content

Deflation Watch: Energy prices beckon deflation’s return

It is likely that CPI inflation turned negative in September, and should remain close to zero for most of the rest of this year. However, as weak price pressures are being driven largely by lower energy prices rather than domestic economic weakness, deflation should not worry the MPC.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.