Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what recent representations he has received on the effect of negative inflation on the economy.

Low inflation is currently being driven by the recent fall in the oil price, which many forecasters expect to be positive for UK GDP. For example both the Bank of England and the OBR expect the fall in the oil price to boost GDP growth over the next year, as a result of the increase in households’ real income, which should translate into higher household spending.