CHANCER Chancellor George Osborne claimed Britain was sliding towards “good” deflation yesterday after prices rose at their slowest rate since 1960.

Official data revealed the consumer price index (CPI) measure fell to 0.3 per cent in January on the back of plummeting oil prices and a supermarket war.

Other countries have already put in place drastic measures to stave off falling prices, with Sweden announcing a negative interest rate last week.