United Kingdom: inflation falls in March but less quickly than expected
Inflation fell slightly in the United Kingdom in March, to 3.2% over one year compared to 3.4% the previous month, but still remains well above the monetary authorities’ target and a thorn in the side of Conservatives in the campaign.
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| Fruit and vegetables on a market stall in an east London area. |
| Archive photo: AFP/VNA/CVN |
This is the lowest level of price increase since September 2021, specifies the National Statistics Office (ONS) in its press release Wednesday April 17.
Food prices have particularly stalled, good news for consumers facing a purchasing power crisis, while fuel has slowed the decline in prices, with oil prices having rebounded sharply since the fall in the process. geopolitical tensions.
Chancellor of the Exchequer Jeremy Hunt said the March figures were “good news” which would help the British finances.
The British Prime Minister, Rishi Sunak, for his part affirmed that“after two difficult years, our economic plan is working.”
Inflation had soared to 11% in the fall of 2022 and remains one of the main downsides for the conservatives before legislative elections expected this year.
Some economists believe that the decline in inflation, a little less pronounced than expected by analysts and slower than hoped, is regular enough to potentially encourage the Bank of England to lower its interest rates sooner. provided that.
“Today’s figures should reassure the Bank of England that consumer prices remain on track” of its objective of 2% as much as “wage growth has also lost strength in recent months.comments Christopher Breen, economist at the CEBR economic think tank.
He notes that prices are expected to slow further in April due to a planned drop in electricity prices.
“We still anticipate a first rate cut in June”, concludes the economist. The BoE’s key rate currently stands at 5.25%.
Rob Wood, of Pantheon Economics, judges on the contrary that the outlook for June is moving away a little and that the BoE’s monetary policy committee could “choose to wait until August.
The pound rose 0.26% to USD 1.2459 around 09:15 GMT.
AFP/VNA/CVN
