UK’s Osborne says country not facing ‘damaging deflation’

LONDON (Reuters) – Britain is not facing “damaging deflation” and is well-equipped to stave off the risk of this happening, finance minister George Osborne said on Tuesday after data showed consumer price inflation fell below zero in March.

“We should not mistake this for damaging deflation,” Osborne said in a statement, adding that Britons should welcome the lower cost of living driven by a fall in oil prices since last year.

“Of course, we have to remain vigilant to deflationary risks and our system is well equipped to deal with them should they arise,” he said.

(Reporting by David Milliken; editing by John Stonestreet)