UK March CPI Rises 3.2% Year-on-Year, Exceeding Market Expectations

First Church Visit in 2 Years and 6 Months Since September 2021

The UK’s Consumer Price Index (CPI) inflation in March exceeded market expectations but continued to slow down.

Bank of England (BOE) [Photo by AFP]

The UK Office for National Statistics (ONS) announced on the 17th (local time) that last month’s CPI recorded an annual rate of 3.2%. This is lower than February’s 3.4% and the lowest in two years and six months since September 2021 (3.1%). However, it is 0.1 percentage points higher than the 3.1% forecasted by major financial institutions’ economists.

The core inflation rate, excluding energy, food, alcoholic beverages, and tobacco, was 4.2%, down from 4.5% in February. Market experts had predicted 4.1%. The service price inflation rate, closely monitored by the central bank, the Bank of England (BOE), was 6.0%, down from 6.1% the previous month but still higher than the expert forecast of 5.8%.

The UK’s inflation rate remains above the BOE’s target of 2%. Market experts expect the BOE to cut the base interest rate (5.25%) this summer.

Meanwhile, the UK’s March output sector Producer Price Index (PPI) rose by 0.2% compared to the previous month, in line with market expectations.

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