Why There's Little to Fear as the Spectre of Deflation Descends

On UK Deflation is finally here. After several months of speculation, and even a technical reading of -0.01pc in March,
But should we be worried?
More seriously, deflation increases real debt burdens, which makes them harder to service. A spiral of falling prices and wages can quickly take hold. there was always a risk that the dangers of zero or negative price growth could "metastasise", he said the evidence suggested arguments that UK deflation could push swathes of people to delay spending were reductive and even "misleading". "The timing of 'inflation' and now deflation also coincides with strengthening wage growth. Hence, as the labour market tightens and prices remain broadly unchanged from a year ago, households will enjoy a spending power boost," said Nina Skero, an economist at the CEBR. "We remain of the view that the Bank's Monetary Policy Committee will sit on its hands until at least that point has been reached. But in terms of the broader monetary policy stance, the MPC is likely to have been influenced more by last week's stronger than expected wage data than [Tuesday] figures."