UK inflation rises to 0.7% in March due to rising fuel and clothes prices

THE UK’s rate of inflation rose in March but was lower than expected as the price of vehicle fuels and clothing rose.

The Office for National Statistics (ONS) said the Consumer Prices Index (CPI) hit 0.7% in March.

It comes after a rise to 0.4% in February and 0.7% in January.

Inflation had unexpectedly slowed in February, largely because of the biggest annual fall in clothing and footwear costs since 2009.

Discounting, which is normally seen in February as retailers look to shift winter stock, eased in March but was still higher than normal for the time of year.

Inflation is expected to increase this year, as the UK and other countries around the world ease their coronavirus lockdown restrictions.

Bank of England forecasts have inflation reaching around 2% by the end of 2021.

A consensus of analysts supplied by Pantheon Macroeconomics was that CPI would rise to 0.8% in March.

More to follow…

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