UK inflation now officially zero

doesn't really effect me as I am not a high volume seller yet Although have just arranged a nice little earner with a customer of 200 keyrings

Over the last month the cost of Brent oil has gone up by around $10 a barrel to currently be $65 per barrel, April 2nd the price stood at $55 in January it stood at it's lowest of around $46 per barrel. So it is gradually creeping back up, I'm sure many people still believe that it is still at its low price in January and think they are getting ripped off at the petrol forecourt. The former BP CEO Tony Haywood believes that the oil price is going to soar. The collapse in the oil price was down to OPEC trying stop shale oil exploration in the US (they need to operate at $80 per barrel) Many of these US oil companies raise funds on the AIM on the London Stock Exchange, the collapse of the oil price has seen the collapse of the share price and consequently many of these companies either being suspended or collapsing altogether with investors losing thousands. But that is the risk you take.

And talking of oil, there has been a lot of news about the recent potential oil find at Gatwick covering an area of 55 sq miles. The Horse Hill License which this is has had an independent report carried out by a company called Nutech which states in it's report that with the data that it has there could be as much as 158 million barrels of oil per square mile. If after the flow tests are carried out and if proved successful, this will allow the UK to stick 2 fingers up to OPEC, cut all our ties to the middle east, it will be larger than North Sea Gas, in fact it will put the UK right back to being a world leader again. Apart from the Green party any other political party in Government will be exploiting this find to the maximum. If and it is a calculated if, because it's ok knowing you have oil lying beneath your feet, but extracting it is a bit different this country will change dramatically overnight. And with a bit of luck I'll be retiring sooner than I thought... This will be mega for the UK if it comes of....

I think both high and low inflation figures must effect everyone, regardless of whether their business owners or not as it effects interest rates. It would seem low inflation is the better of the two according to the Bank of England but with low inflation comes low interest rates.

For those with large savings deposited like pensioners, low inflation is bad as their money is not generating hardly any income, so they end up spending their savings to survive. I currently get 0.1 percent with one particular account with the Halifax, but as there is only £7.50 in the account I'm not overly fussed nor losing any sleep about it.

If as is stated we're now at zero rate inflation, then according to the Bank of England's formula the interest base rate should fall again, I can't see that happening though But low interest rates have certainly benefited borrowers (me included)

As for the current state of inflation, I think it will be short lived. Over the last quarter we have had a relatively mild winter, so the demand for fuel will have been less than normal, as I said previously the cost of crude oil is actually rising slowly...

Oil prices are going back up right now. I just hope it does not reach $100 per barrel.

Good old wikipedia says:

"Most central banks are tasked with keeping their inter-bank lending rates at low levels, normally to a target annual rate of about 2% to 3%, and within a targeted annual inflation range of about 2% to 6%. Central bankers target a low inflation rate because they believe deflation endangers the economy."

You can't accuse me of posting nonsense then quote Wikipedia 

Nice to have someone feisty though, welcome back