Hixamstudies: What is causing the fall in inflation?

Lower cost push inflation – falling oil prices
Other commodity prices also falling, such as metals, food.
Lower energy prices – gas and electricity
Low worldwide inflationary expectations. Europe is experiencing deflation and this is keeping inflation low.
Supermarket price wars, with big chains, such as Tesco and Sainsbury attempting to maintain market share from Pound Shops and discounters like Lidl
Wage growth still weak, despite early signs of some wage growth.
Note: RPI inflation is still 1.6%. Also, core inflation stripping out volatile items such as petrol, oil and energy prices is higher than the headline CPI rate.

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