Why are the costs of food and petrol falling?

The Chief UK Economist of Berenberg Bank, Rob Wood, explains why some everyday costs such as petrol, food and some utility bills are coming down in price.

A former economist at the Bank of England, Mr Wood said falling oil prices, supermarket price-wars and a stronger pound bringing down import costs are all contributing to cheaper goods such as televisions and computers.

He went on to explain that deflation isn't something consumers need to worry about as the economy is growing and unemployment is falling: "People have faith that the Bank of England will return inflation to 2% eventually"