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The cost of living dropped to -0.1%, as measured by the Consumer Prices Index (CPI) stated the Office for National Statistics (ONS).

Deflation is when the cost of living becomes cheaper over time because of falling prices.

Since the official records began in 1996, it is the first time that inflation has turned negative. It also estimated that deflation has not been seen in Britain since 1960. This is good news for consumers who have suffered from years of stagnant wages since the economic crisis took hold. This means that spending power is greater as products fall in price.

On the flip side, this can be bad news for the economy if deflation continues for a long period of time because it encourages consumers and businesses to delay purchases as they hope for a better price later on. This could lead to shrinking output and therefore, cause the economy to contract. However experts said that deflation featured in April mostly because of the timing of Easter this year compared to the previous and therefore, is likely to be for one month only.

The drop in the price of oil as well as supermarket price wars has been the main cause of falling prices in the UK. Food prices fell by 3% in the year to April 2015 and prices of motor fuels dropped by 12.3%. In recent weeks the cost of oil has started to rebound and global food prices are becoming steadier, according to Capital Economics.

Between March and April 2015, the cost of petrol and diesel increased by 1.6%.