Inflation in G7 could hit Great Depression low

THE CONSUMER price index (CPI) in France fell to 0.8 per cent during January, following a trend that has left CPI in every G7 country below two per cent.

With only Japanese CPI on an upward trend, inflation could end the current calendar year lower than two per cent in each of the advanced economies for the first time since the peak of the Great Depression in 1932.

Capital Economics suggests that UK CPI could fall to one per cent this year, and prices are still muted in the US and Eurozone.

Most recently, the UK recorded 1.9 per cent inflation for January, the first time the figure has dropped below the Bank of England’s target level since 2009.