Oh! So prices are still increasing monthly but not so fast. Great! So much enthusiasm for rate-cuts. I'm afraid the savers are not so enthusiastic. Deflation is coming? I'll believe it when I see it. Meanwhile, inflation is falling but not to zero, yet!! Will it get there? Never mind, cut rates now!

Richard, Alicante, Spain

"A sharp fall in transport costs...."
Banks have stopped issuing letters of credit. Nothing is being shipped. Sterling is down 25%. These are already the seeds of the faster inflation that is to follow.

Tim, Sanya, China

I look forward to deflation; it will mean 0% BoE rate (it can't be negative, can it), 0% savings rate (likewise) and we will not pay a penny on income tax on our savings whilst their real value grows. Would the govt allow that? Poor to become richer? No chance.

Mich, Portsmouth,

The fact is Fred, inflation is not lower, its the government cooking the books and as for deflation forget it, its deleveraging thats what is causing so called asset deflation not deflation itself.
Inflation (the creation of money) is going through the roof, hyperinflation by end of 2010

Steve, Hatfield, UK

My electric company is considering cutting the price in 2009. Their fat cat bosses will be raking it in charging exorbitantly high prices all this winter when people use more energy.

How can inflation be lower when my bills are still ridiculously high?

Fred, Moray, Scotland

More fiscal mismanagement from the government. Who are they blaming now?

steve tea, manchester, cheshire

Although it leads to reduced interest rates, low inflation is not pure good news for the highly indebted millions, as it means that their REAL debt is decreasing more slowly.

S. Smith , London,

So let cut the interest to zero and destroy all savings .Is that what your paper wants? to destroy the people who have been saving for a rainny day? I used to think that you were a responsible paper I dont think this any more because I cannot see the logic inlowering rates to zero.

Nicholas , Larnaca, CYPRUS

At 4.5% that is double the B of E target of 2%. Surely the Governor MUST write another letter to the chancellor about how to stop inflation? Drop interest rates!! This puts up prices of imports, practically everyrthing we consume= MORE inflation

Gordons give away pre election spree is on the way!

Steve, Wimborne, U K

Should we worry about deflation?

Analysis
By Evan Davis
BBC economics editor

Economists and politicians in industrialised countries around the world are united in worrying about deflation. But is it a bogeyman or a real danger?

Printed on the 3/6/2003. I wonder what happened next?

Alex, Salisbury, United Kingdom

The point that inflation is not rising "as fast" is important.
If inflation looks to have dropped 'back' to 2% doesn't mean everything is ok again.
Unless the underlying supply of income into the system (your pay) matches the current inflation - you'll still be behind by a long way.

George, London, England

no doubt the vile Bruin will take the credit just as he would not take the blame, the slow down in inflation has nothing to do with him for the same reasons that he denied all blame for the rise neither we nor he can have it both ways

peter c, Devizes, Wessex

@david dredge, norfolk,

Well said. Prices have risen and will not drop. They are here to stay. Only when inflation drops and wages rise higher than inflation, will we feel the pound in our pocket.

Thankfully, I got all my luxury imported goods just recently - TV, stereo etc.

Darren Ward, Manchester, UK

What the BOE report falls to spell out is that prices stayed flat between September 2008 and October 2008 meaning that on balance everything became more affordable for consumers. They need desperately to change the format of their report to present monthly changes.

Michael, London,

The headline should read "Inflation continues to soar above target even though oil price has plummeted by 50%". I agree with rogerb and others that there is no evidence that inflation will even reach its target let alone us enter a period of deflation. Interest rates are too low and damaging.

Alex, Salisbury, United Kingdom

Rich Worcester. You weren't calling for rate rises when your houses were rising at a hugely inflationary rate so you can't complain when they are falling back to normality ( unless you where so stupid to remortgage to get your hands on money to spend on things you can't afford)

Edward, London,

And how on earth can Howard Archer say "Not only is inflation in the UK still dead but deflation is about to be reborn" when inflation is 4.5%? The mind boggles!

Alex, Salisbury, United Kingdom

"Tell me again what months inflation figures are our old age pensions increased by next April?
It wouldn't be October would it."

No Adrian, it'sSetember thank goodness!

John, Sussex,

Rich, worcester,

And were you complaining when inflation was about +20% for the previous 3-4 years as house prices rocketed?

Alex, Salisbury, United Kingdom

Inflation is about -20%. Peoples house prices outway the price of a baked bean or 10p at the petrol pump.

Bank of England is about 14 months to late.

Nice one.

Rich, worcester,

Headline inflation falling will not effect the high street bank lending rates to business and personal which are still at usurious levels. Until the Bank of England step in and place a cap on the spread between LIBOR and the borrowing rate offered to consumers RIPOFF Britain will continue.

Will, Lincoln, UK

A falling inflation rate does NOT mean prices are falling. It just means they are not RISING so fast.

david dredge, norfolk,

On the basis that Mr Jones's fixed rate is about to end soon, I think we as a country should rally around and support his request for 0.1% interest rates. I'm on a base tracker so I'm not partisan at all, really.

Matt S, London, England

Surprise surprise
Tell me again what months inflation figures are our old age pensions increased by next April?
It wouldn't be October would it.

Adrian John Bell, Cardiff, u.k

Inflation is still way above its target range of between + or - 1% around 2%.
RPIX inflation is 4.8% way in excess of its 2.5% target.
If inflation were to run under the 2% cpi target for a while it would only help to balance out the recent 3% above target increase.

Jim, Belfast, Northern Ireland

The cost of Oil drops by 50% and inflation only drops from 5.2% to 4.5%. And they expect me to believe that inflation is going to drop to less than 2% and possibly negative. Sorry I think NOT

Keith Sloan, Nr Winchester, UK

Does anyone believe that opec will let oil go much lower?
Does anyone believe that when things turn food and oil won't rise again due to structural imbalances?
Does anyone believe that the pound fall won't raise imported goods?
If you do then deflation is possible and you might be daft

rogerb, bridport, uk

I agree with the previous comment from Liverpool. It is one of the few times in financial history when the path of inflation and economy are so clear and globally linked that they should just cut the base rate to the appropriate level now rather than stepwise cuts. It brings more certainty.

mac, Manchester, UK

just drop intrest raets to 0.1% and be done with it, if that does not get things moving again nothing will. That and my fixed rate rusn out soon so i need a good deal.

MR Jones, Liverpool, England