United Kingdom Inflation March 2021

United Kingdom

United Kingdom: Inflation increases in March but remains well below target

April 21, 2021

Consumer prices increased a seasonally-adjusted 0.27% in March over the previous month, accelerating from February's 0.09% increase. The result was largely due to rising prices for recreation and culture.

Inflation edged up to 0.7% in March, above February’s 0.4%. Annual average inflation ticked down to 0.6% in March (February: 0.7%). Core inflation rose to 1.1% in March from February’s 0.9% increase.

This year inflation is seen rising close to the Bank of England’s 2.0% target due to a combination of higher energy prices, economic recovery and supply-chain pressure linked to Brexit.

FocusEconomics Consensus Forecast panelists expect inflation to average 1.5% in 2021, which is unchanged from last month’s forecast, and 1.9% in 2022.


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United Kingdom Inflation March 2021

Note: Annual and monthly variation of consumer price index in %.
Source: Office for National Statistics (ONS) and FocusEconomics calculations.


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