British Inflation Hit Zero In February On Lower Energy, Food Prices

Inflation in the United Kingdom fell to zero in January and February, the lowest level on record, according to the Office for National Statistics.

But excluding energy and food prices, February's inflation rate was 1.2 percent.

"As in most recent months, this indicates that most of the downward pull on inflation has come from price movements for goods excluded from the core calculation, notably motor fuel and food," the British agency said.

Related Link: Why New Home Sales Hit An Unexpected High In February

The zero rate was less than the 0.1 percent increase analysts had expected, according to the BBC.

The Bank of England Governor Mark Carney said last month that interest rates could be cut if the rate of inflation fell further.

"The U.K. is not experiencing deflation," Carney said. "The most important single reason for below-target inflation over the past year is the unexpected recent sharp drop in energy prices."

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