UK inflation has fallen to 0.1?

At the moment it can be viewed as a good thing as it is increasing the purchasing power of people's income. This means people will feel slightly richer. The Bank of England doesn't expect inflation to continue being negative for long, though so it is unlikely to have many negative effects. If it did continue for longer than expected, however there could be very serious consequences - some worse than high levels of inflation. For example, people may start to delay their spending now because they know that goods will be cheaper in the future. This is unlikely to happen, however and the deflation can be seen as a short term thing that has been caused by the fall in oil prices.