May 12, 2020 / 1:50 PM / 22 days ago

UK inflation could go negative, would not be damaging deflation-BoE's Broadbent

LONDON, May 12 (Reuters) - British consumer price inflation could turn negative around the end of this year but that would not represent the start of a period of damaging deflation, Bank of England Deputy Governor Ben Broadbent said.

Asked about the possibility of inflation turning negative on a BoE online presentation with its regional agents, he said the BoE’s best guess for inflation was around zero in the fourth quarter, so there was a chance of prices falling below that.

“I wouldn’t describe that... as a sort of deflation” that became entrenched and pushed down wage growth to very low levels, he said. “That’s always something we watch for.” (Writing by William Schomberg, editing by Andy Bruce)

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