Negative inflation has turned positive this month because transport costs have helped the UK inflation rate to increase. Inflation stood at -0.1% in April but recently rose to 0.1% in May, as measured by the Consumer Prices Index (CPI).
The Office for National Statistics (ONS) reported that transport, in particular air fares, are the biggest contribution to the rise. However, although this was the main factor, other reasons are taken into account such as the rise in food and petrol prices during May. Despite these rises, the prices were still lower than a year ago.
When CPI turned negative in April, this was the first time it had done so since 1960. The food and fuel prices have had an effect on the rise in inflation and pulled down the rate by about 0.5 percentage, however this was less pronounced than the month before because the prices then had a negative effect of 0.7 percentage points.
Mark Carney, who is the Bank of England governor, said that he expects UK inflation to continue to be low in the short term. The Bank also expects near-zero inflation, which will help the UK economy by improving the spending power of households.