Peter Hoskin

Deflation averted...<br />

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...for now.  The RPI measure of inflation (which includes mortgage repayment costs) dropped from 0.9 percent in December to 0.1 percent in January.  The targeted measure, CPI, remains well above zero - dropping from 3.1 percent to 3.0 percent - although some forecasters think it will go negative this year.  Expect further rate cuts from the Bank to stave off a period of prolonged deflation.