United Kingdom: Inflation moderates for the first time in eight months
April 12, 2011
Inflation finally dropped off its upward trajectory in place since October, somewhat easing pressure on the Bank of England to raise interest rates. In March, consumer prices added 0.3% over the previous month, which came in below the 0.7% price rise observed in February. As a result, annual inflation dropped from 4.4% in February to 4.0% in March, undershooting the 4.4% expected by the market. The monthly price rise reflected higher prices for transport (+1.2% month-on-month), mainly as a result of rising costs for fuels and lubricants, which were partially offset by lower prices for food and non-alcoholic beverages (-1.4% mom). In its latest inflation report, the Bank of England projects inflation to average 4.3% this year.