Britain now has the highest rate of consumer price inflation in western Europe, according to official data released on Wednesday, after it dropped less than expected in March from February's 10.4% to 10.1%.
According to economists surveyed by Reuters, the annual CPI rate will drop to 9.8% in March, regressing the buying power of workers whose earnings are rising more slowly while still moving away from the 41-year peak of 11.1% recorded in October.
Although Austria had a higher inflation rate in February, Britain had the highest inflation rate in western Europe and was the only country in the region to publish a double-digit number for March.
After core inflation, which excludes volatile energy and food costs, failed to decline as anticipated in March and instead maintained at 6.2%, the results are likely to support wagers that the Bank of England will increase interest rates again next month.
"These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses," finance minister Jeremy Hunt said.
According to the Office for National Statistics, the price of food and non-alcoholic beverages increased by 19.1% annually in March, which is the highest increase of this kind since August 1977.
The BoE predicted that inflation would "fall significantly" in the second quarter last month. The Bank of England predicted 9.2% inflation for March back in February.
"Another 25 basis point rate hike appears highly likely in May, and the Bank must stand ready to take further action unless economic data shows more definitive signs of cooling," said Hugh Gimber, global market strategist at J.P. Morgan Asset Management.
While the large increases in energy costs from last year's comparison will inevitably cause inflation to diminish, the BoE is attempting to predict how quickly.
On that front, other indicators have appeared to be mixed, with data from Tuesday showing wage growth that was greater than anticipated. However, business surveys reveal pressure on selling prices and cooling costs.
The probability that the BoE will increase interest rates next month increased from 85% on Tuesday to 95% in financial markets.
Manufacturers' price inflation drastically decreased in March to 8.7%, its lowest level since October 2021, down from 11.9% in February, partly due to a decline in oil costs.
Manufacturers' raw material costs were 7.6% more than they were a year ago, which is a decrease from February's 12.8% increase but still more than analysts surveyed by Reuters had anticipated.
(Source:www.reuters.com)
According to economists surveyed by Reuters, the annual CPI rate will drop to 9.8% in March, regressing the buying power of workers whose earnings are rising more slowly while still moving away from the 41-year peak of 11.1% recorded in October.
Although Austria had a higher inflation rate in February, Britain had the highest inflation rate in western Europe and was the only country in the region to publish a double-digit number for March.
After core inflation, which excludes volatile energy and food costs, failed to decline as anticipated in March and instead maintained at 6.2%, the results are likely to support wagers that the Bank of England will increase interest rates again next month.
"These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses," finance minister Jeremy Hunt said.
According to the Office for National Statistics, the price of food and non-alcoholic beverages increased by 19.1% annually in March, which is the highest increase of this kind since August 1977.
The BoE predicted that inflation would "fall significantly" in the second quarter last month. The Bank of England predicted 9.2% inflation for March back in February.
"Another 25 basis point rate hike appears highly likely in May, and the Bank must stand ready to take further action unless economic data shows more definitive signs of cooling," said Hugh Gimber, global market strategist at J.P. Morgan Asset Management.
While the large increases in energy costs from last year's comparison will inevitably cause inflation to diminish, the BoE is attempting to predict how quickly.
On that front, other indicators have appeared to be mixed, with data from Tuesday showing wage growth that was greater than anticipated. However, business surveys reveal pressure on selling prices and cooling costs.
The probability that the BoE will increase interest rates next month increased from 85% on Tuesday to 95% in financial markets.
Manufacturers' price inflation drastically decreased in March to 8.7%, its lowest level since October 2021, down from 11.9% in February, partly due to a decline in oil costs.
Manufacturers' raw material costs were 7.6% more than they were a year ago, which is a decrease from February's 12.8% increase but still more than analysts surveyed by Reuters had anticipated.
(Source:www.reuters.com)