Oil rout taking UK economy to 'joyflation': consultant

Paris

THE UK economy is about to get a dose of "joyflation." That's the term coined by Oxford Economics Ltd to describe the combination of the oil-driven slowdown in inflation and accelerating economic growth. It's enough to force the Misery Index - a measure of an economy's health generated by adding the rates of unemployment and inflation - to its lowest since at least 1989 when consumer-price data became available.

For Prime Minister David Cameron, that's good news as he seeks re-election in May arguing that the squeeze on living standards since the 2008 financial crisis is coming to an end. It may also give Bank of England Governor Mark Carney room to leave interest rates at record lows to cement the recovery.