Inflation Still At Negative Level Of -0.1%

The annual rate of inflation was unchanged at -0.1% in October, supported by lower drinks costs as clothing prices rose ahead of Black Friday and Christmas.

The Office for National Statistics (ONS) said it was the first time its Consumer Prices Index (CPI) measure of inflation had been in negative territory for two consecutive months.

It briefly touched a negative level in April - with inflation at or close to zero for nine months now.

CPI has been driven down this year mostly by the collapse in world oil costs but also the effects of the supermarket price war which have resulted in deflation - a sustained period of falling prices - for shoppers at the checkout.

The ONS reported upward price pressures for inflation from clothing and footwear costs - with fewer products on sale this October compared to a year ago.

It charted a 2% overall increase in prices for clothing and footwear - the largest September to October increase since official records began.

That increase took place in the run-up to Black Friday promotions at the end of the month and the crucial Christmas season.

The ONS also marked rises in the cost of eating and drinking out but saw downward price pressures for university tuition fees, food, alcohol and tobacco.

The negative inflation rate is good news for consumers as it helps improve their spending power at a time of continued low interest rates.

However, the latest wage figures released last week suggested some weakness was creeping in to pay awards as a result of economic uncertainty.

Regular pay growth - which excludes bonuses - slipped to 2.5% for the July-September period, compared to 2.8% in the three months to October.

While weaker, the real-terms growth in pay remains strong given the lack of price increases.

Low inflation also eases any pressure on the Bank of England to raise the base rate of interest.

Its latest Inflation Report signalled that it could be 2017 until borrowing costs start to rise.