Five reasons zero inflation is good for you

The rate of inflation in the UK fell to 0% in February, according to figures from the Office of National Statistics (ONS).

That's the lowest it's been since records began in 1988, and means that the cost of living in Britain today is exactly the same as it was one year ago.

The government claims that zero inflation is "good news for families". So let's take a closer look at how it could make your life easier...

You spend less on the weekly shop
According to the ONS, zero inflation is largely due to lower prices for food and non-alcoholic drinks, furniture and household goods and "recreation and culture" items such as books, games and toys.

Food prices, for example, dropped 3.4% month on month due to a supermarket price war.

It costs less to fill up your car
Fuel prices have plunged by 16.6% over the last 12 months due to a big fall in the oil price. And that makes everyday journeys such as commuting to work or driving the kids to school a lot less expensive.

Chancellor George Osborne said: "This zero inflation is driven by falling petrol prices and falling food prices, so it's good news for families."

It could slash your energy bills
Cuts in energy bills are among the factors likely to push inflation lower in March, according to economists.

So keep an eye out for energy price cuts and shop around for a better value tariff when they happen.

The energy switching mobile phone app Voltz will let you know when a cheaper deal becomes available.

It makes European goods and services cheaper
The strength of the pound against the euro, the UK's main trading partner, is one of the driving factors of low inflation as it makes imports cheaper.

For anyone heading off on a European holiday over the next few months, it also means that everything from a pint of beer to a new dress will cost less.

It makes your savings account better value
Inflation eats into your savings returns. Say inflation is at 2%, you need to be earning at least 2% after tax to ensure your nest egg is worth as much as it was this time last year.

Zero inflation therefore makes it easier for savers to earn reasonable returns.

Anna Bowes of SavingChampion said: "Lower inflation offers savers some respite in the current record low interest rate environment."

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