Canada's Inflation Rate Enters Negative Territory Amid Economic Downturn

UK inflation tumbled to lowest level in four years in April, says ONS

The slowdown was partially offset by a 0.4% jump in prices in the recreation and culture category, while the prices of games, toys, and hobbies - which includes items such as games consoles and craft kits - rose 0.5% in the month.

Also, food and core inflation rose to 0.93% and 1.18% (from 0.80% and 0.94% in March) respectively.

"On month on month basis however, April 2020 food inflation was highest in Akwa Ibom, Lagos and Oyo, while Bayelsa, Ebonyi and Enugu recorded price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate)", the NBS said.

"In that sense, an increase in food prices in April likely hurts more than a drop in gasoline prices helps".

"Energy prices, which have a big impact on consumer prices, could fall further in the coming months when the effect of falling oil prices is mirrored in electricity and gas prices", a ministry official said.

Attributing the rise in food prices to the continued border closure and increased demand for food, Professor Uche Uwaleke, stressed the need to enhance flow of stimulus packages to farmers in order to increase food production.

Hotel fees and foreign travel prices sank while the cost of durable goods edged down as consumers stayed home amid the virus woes.

UK inflation tumbled to lowest level in four years in April, says ONS

Bank of England deputy governor Ben Broadbent recently said it was possible that inflation could fall into deflationary territory, below zero, by the end of 2020.

But the ONS warned over the challenges of collecting the inflation data, with 90 goods or services unavailable to consumers in April due to lockdown restrictions. As such, core inflation has dropped by 0.3% April, which is the lowest it has been since January of a year ago.

Price stability is one of the core mandates of the bank, which has a 2% inflation target.

The increase in inflation rate was caused by faster increase in non-food prices; with average food prices climbing marginally.

"The inflation outlook, then, supports the [Bank of England's] Monetary Policy Committee doing more to stimulate the economy at its next meeting in mid-June - we look for a further £100bn of quantitative easing to be announced", he added.

The CPI common measurement, which the central bank says is the best gauge of the economy's underperformance, dipped to 1.6% from 1.7%.

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