Inflation in the UK saw a surprise fall in March, official statistics showed.
The Consumer Prices Index fell to 4% from 4.4%, while the Retail Prices Index fell to 5.3% from 5.5% in February, largely due to a fall in the price of food and non-alcoholic drinks.
The news followed a report from the British Retail Consortium, which said that sales on the High Street saw the biggest fall since records began in 1996.
These two indicators have led some economists to suggest the Bank of England will not start to increase interest rates as early as previously thought.
Meanwhile, as the fallout from Japan’s nuclear disaster continues, a report by JP Morgan has estimated that Tepco may face as much as 2 trillion yen ($23.6bn; £14.5bn) in compensation claims.
The company has been attempting to contain the radiation leak crisis at its Fukushima Daiichi nuclear plant.
The International Monetary Fund (IMF) has also downgraded its view on Japan’s economy in the wake of the devastating earthquake and tsunami. It now expects Japan’s economy to grow by 1.4% this year, compared with a previous forecast of 1.6%.
But the IMF maintained its forecast for the global economy, saying it expects it to grow by 4.4% in 2011.