Economics is known as “the dismal science” but today it’s delivering some upbeat news: prices are rising at the slowest rate on record as inflation falls from 0.5% to only 0.3% in January, ITV reported. As the Bank of England pointed out last week, the main reasons headline inflation is falling are slipping oil and food prices. Over the past year they have dropped by 16.2% and 2.8% respectively. For us consumers this is unambiguously good: as our wages gradually rise faster than the prices we have to pay, we become a little better off.
