Inflation eases however nonetheless stays above 10% as value of important meals hit document excessive

The charge of inflation has eased barely however nonetheless stays above 10%, in line with official figures exhibiting document prices for a lot of important meals.

The Office for National Statistics (ONS) mentioned the patron costs index (CPI) measure slowed to 10.1% in March from 10.4% the earlier month.

Economists had largely anticipated a determine of 9.8%.

The knowledge represents a slight enchancment within the energy-driven value of residing disaster as gasoline costs fell again to ranges seen a yr in the past when Russia’s warfare in Ukraine prompted a spike in oil prices.

However, upwards strain remained from family gasoline and electrical energy and meals, together with necessities corresponding to bread, milk and eggs.

Food and non-alcoholic drink inflation was measured at 19.2% by the ONS.

Other elements behind the spike have been highlighted in February’s inflation knowledge, particularly the salad scarcity that had gripped supermarkets that month.

A crumb of consolation is that costs for items corresponding to tomatoes and cucumbers are tipped to fall sharply because the UK rising season gathers tempo.

ONS chief economist Grant Fitzner mentioned of the easing in general inflation in March: “The primary drivers of the decline have been motor gasoline costs and heating oil prices, each of which fell after sharp rises on the similar time final yr.

“Clothing, furniture and household goods prices increased, but more slowly than a year ago.

“However, these have been partially offset by the price of meals, which remains to be climbing steeply, with bread and cereal value inflation at a document excessive.

“The overall costs facing business have been largely stable since last summer, although prices remain high.”

The newest figures have been launched towards a backdrop of hopes {that a} deceleration in inflation would enable the Bank of England to pause its motion to battle inflation by rate of interest rises.

It has raised Bank charge at 11 consecutive conferences since December 2021 in a bid to maintain a lid on value pressures within the financial system.

While policymakers can do nothing about issues like vitality – the principle driver of the inflation disaster – the Bank can look to take demand out of the financial system by elevating borrowing prices.

It could have been inspired by the easing within the headline charge of inflation.

But a separate measure closely-watched by the Bank that strips out risky value components, generally known as core inflation, remained static at 6.2%.

Employment knowledge launched on Tuesday additionally confirmed that wages continued to creep upwards, albeit at ranges effectively beneath CPI.

The Bank has beforehand expressed worries that wage rises searching for to fight the hit to family budgets from inflation, which have come into sharp focus through the winter strikes throughout the financial system, danger stoking inflation forward.

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Financial market knowledge steered the prospect of a 0.25 share level rise in Bank Rate on the subsequent assembly, due subsequent month, had risen from 80% to 95%.

Chancellor Jeremy Hunt mentioned of the inflation knowledge: “These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses.

“We are on monitor to do that – with the OBR (Office for Budget Responsibility) forecasting we are going to halve inflation this yr – and we’ll proceed supporting individuals with cost-of-living help price a median of £3,300 per family over this yr and final, funded by windfall taxes on vitality earnings.”

His Labour shadow, Rachel Reeves, said: “The query for households stays as actual as ever – when will they really feel higher off underneath this Conservative authorities?

“And, why when the cost of living continues to bite, is the government refusing to freeze council tax this year, paid for by a proper windfall tax on oil and gas giants?”