LONDON (Reuters) - Britain is at low risk of deflation, despite a sharper than expected fall in consumer price inflation over recent months, Bank of England policymaker Ian McCafferty said on Tuesday.
Official statistics earlier on Tuesday showed that inflation fell below the BoE's 2 percent target last month for the first time in more than four years.
"I think the risks of deflation in this economy are pretty minimal," McCafferty, a member of the BoE's rate-setting Monetary Policy Committee, said in an interview with London radio station LBC.
"You would normally only see deflation if the economy was really floundering, and I think from that point of view we have a reasonable backstop," he added.
McCafferty also said he saw little sign that British house prices were getting out of control, as transaction levels remained low and price rises were concentrated in London.
(Reporting by David Milliken and Andy Bruce; editing by Stephen Addison)