FOR the first time since 1960, the price of British goods and services has fallen over the course of a year—but only just. Prices fell by 0.1% in the year to April 2015, having been unchanged in the year to March. The change is tiny and its cause is not a concern. But a threshold has been breached: Britain is now in deflation.
Price rises have been smothered by falling oil prices. A year ago, a barrel of the black stuff cost $103; today, $65. That has made it 12% cheaper for Britons to fill their cars with fuel. Food is also 3% cheaper than in April 2014, in part due to an ongoing price war between supermarkets. And the pound is on the rise; sterling is up 17% against the euro in the past year, making imports from Continental Europe, Britain's biggest trading partner, cheaper.
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