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TIME:2024-05-21 13:50:51 Source: Internet compilationEdit:style
LONDON (AP) — Inflation in the U.K. fell to its lowest level in two and a half years in March after
LONDON (AP) — Inflation in the U.K. fell to its lowest level in two and a half years in March after a further easing in food prices, official figures showed Wednesday, a development which could further pave the way for a welcome cut in interest rates soon.
Consumer prices rose by 3.2% in the year to March, down from 3.4% in February, the Office for National Statistics said. That’s the lowest level since September 2021.
The fall in the annual rate was not as big as anticipated. Economists had predicted a reading of 3.1% for the month.
Inflation is still running higher than the Bank of England’s target of 2% but the direction of the move appears clear. Inflation hit a high above 11% at the end of 2022 in the wake of Russia’s invasion of Ukraine, which led to sharp increases in energy costs.
The fall means the U.K.'s inflation rate is lower than the U.S.'s for the first time in two years. In March, inflation in the U.S. rose to 3.5%.
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