After just one negative month the UK’s inflation rate returned to positive numbers in May with transport and food prices helping it up to 0.1%.
A return to deflation may occur if oil prices start to fall again this summer and while this looks unlikely there is little upward inflationary pressure, the Bank of England governor Mark Carney saying he expects inflation to remain low in the short term.
The Bank expects low inflation to help households spending power and give a helping hand to the economy.
While inflation remains low there is little pressure on the Bank to increase BOE leaving savers and investors with poor returns from their traditional deposits.
