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