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And it took that significant drop in inflation to cajole the Fed into introducing QE2.
"You've got all the ingredients for a big drop in inflation going forward," Mr. Harris said.
One is to curb upward pressure on the euro, which has been contributing to the drop in inflation.
The drop in inflation partly reflects falling energy prices and fewer increases in indirect taxes by governments.
People living on income from a pension or other pool of savings have not experienced a similar drop in inflation.
The Office for National Statistics said the drop in inflation was driven by falling fuel and food prices.
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In general, and as the next figure shows, there hasn't been a big drop in inflation-adjusted infrastructure spending by government.
The price of a barrel of oil has fallen from $115 at the end of June to about $85 today, prompting a sharp drop in headline inflation (core inflation, which excludes energy, is not quite as low).
The drop in the inflation rate means the Bank of England is considerably closer to its inflation target of 2%, which it has exceeded since December 2009.
"Every country I know of that has issued inflation-indexed bonds since 1950 has subsequently seen a drop in its inflation rates," said John Brynjolfsson, a portfolio manager at Pimco.
There was also a drop in core inflation – taken as a guide to underlying price – adding to signs that low inflation was becoming more entrenched as eurozone economies battled with sluggish global demand from a fresh slowdown and the lingering impact of the last financial crisis.
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