United Kingdom: Inflation falls in March
April 15, 2014
In March, consumer prices expanded 0.2% over the previous month, which came in below the 0.5% increase recorded in February. Furthermore, the figure was in line market expectations of a 0.2% increase. Higher prices for clothing and footwear as well as for hotels, cafes and restaurants were the most important drivers behind the monthly rise.
Building on the lower monthly figure, annual inflation dropped from 1.7% in February to 1.6% in March, the lowest level since October 2009. Meanwhile, annual average inflation inched down from 2.4% in February to 2.3% in March.
In its latest inflation report from February, the Bank of England projected that inflation will average 2.2% in both 2014 and 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.3% in 2014, which is unchanged from last month's forecast. For 2015, the panel forecasts inflation to average 2.3%.