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Commenting on today's announcement that the UK inflation rate has turned negative for the first time on record, Jon Neale Head of UK Research at JLL, said: "Inflation's fall to a negative - 0.1% will continue to stoke the deflation fears that began when CPI started its recent downward trajectory. However, with wages starting to increase and consumer confidence strong, it is highly unlikely that CPI will remain at this level for a sustained period of time.
"Factors such as collapse in commodity prices and food price reduction have been the main drivers behind the fall, but these are likely to subside. I predict that over the coming months we will see CPI start to rise 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."