UK inflation eased further in March, with the Consumer Prices Index (CPI) rising 2.6% year-on-year, slightly below the Reuters poll forecast of 2.7%. This marks a continued cooling from February’s 2.8% annual rate, bringing inflation closer to the Bank of England’s 2% target.
Core CPI, which excludes volatile items such as energy, food, alcohol, and tobacco, increased by 3.4% year-on-year, matching economists’ expectations. On a monthly basis, headline CPI rose 0.3%, falling short of the anticipated 0.4%, while core CPI posted a 0.5% gain, in line with forecasts.
Key Highlights:
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Headline CPI inflation at 2.6% YoY, below the 2.7% consensus and down from 2.8% in February.
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Core CPI at 3.4% YoY, unchanged from expectations, signaling persistent underlying price pressures.
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Monthly CPI growth of 0.3% trails the 0.4% forecast, suggesting further easing in price momentum.
The data may influence the Bank of England’s upcoming policy decisions, as inflation trends closer to target but core pressures remain elevated.
Source: Office for National Statistics