UK inflation slows less than expected

Source: The Business Times

BRITAIN’S annual inflation rate fell less than expected last month, according to official data on Wednesday (Apr 17) that could cloud the outlook for interest rate cuts and cause more pain for the government.

The Consumer Prices Index dropped to 3.2 per cent in March, the lowest level since September 2021, the Office for National Statistics (ONS) said.

Markets, however, had expected a rate of 3.1 per cent in March.

Inflation rose 3.4 per cent in the 12 months to February, the ONS added in a statement.

“Inflation eased slightly in March to its lowest annual rate for two-and-a-half years,” ONS chief economist Grant Fitzner said.

“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.