UK inflation fall its lowest level to 3.2 per cent in March

The consumer prices index has dropped to 3.2% in March, the lowest since September 2021, slowing from a 3.4% increase in February, the Office for National Statistics said on Wednesday.

It brings inflation further towards the UK’s 2% target, and away from the 40-year peak over 11% in autumn 2022. The slowdown in Britain’s inflation rate contrasts with an acceleration of headline price growth in the United States which rose for a second month in a row to 3.5 per cent, according to data published last week.

Sterling rose against the dollar and euro immediately after the figures were published.

Core inflation, which excludes energy, food and tobacco prices, also slowed to 4.2 per cent from 4.5 per cent in February. The Reuters poll had pointed to a reading of 4.1 per cent.
Services inflation, which the BoE also watches closely, eased slightly to 6.0 per cent from 6.1 per cent, the ONS said.

More from World

This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal Zohran Mamdani says he would arrest Netanyahu if he is elected as NYC mayor, calls Israeli PM 'war criminal'

The ONS said a slowdown in food prices was the main contributor to the decrease in headline inflation. The prices of food and non-alcoholic beverages increased by 4 per cent over the 12 months to March, their weakest increase since November 2021.

“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago,” ONS chief economist Grant Fitzner, said. “Similarly to last month, we saw a partial offset from rising fuel prices.”

With inputs from Reuters.