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News Release

London

JLL's Head of UK Research comments on record low UK inflation rate


Commenting on today's record inflation figures, Jon Neale Head of UK Research at JLL, commented:   "Inflation's fall to a record low of 0.0% will understandably start to stoke fears that the UK could be facing deflation. However, with the labour market tightening, wages starting to increase and the consumer confidence strong, CPI is unlikely to remain at this level for long.

"The main driver of the fall in CPI has been the collapse in commodity prices, particularly crude oil, over the past few months, while a reduction in food prices has added to the downward pressure. These factors are likely to subside over the coming months as CPI rises to a positive low figure.

"There could possibly be a further base rate cut if inflation remains stubbornly low, however this looks unlikely at this stage. Borrowing costs will also remain low, supporting the housing market, and hopefully triggering much-needed development across the property spectrum, in both residential and commercial sectors."