UK Inflation Rate Slows Further in March

UK annual consumer prices fell to its lowest in over four year in March of 2014. The inflation rate decelerated for the sixth consecutive month to 1.6 percent, down from 1.7 percent in February, due to lower fuel, clothing and furniture prices.

Year-on-year, the biggest downward contributions came from transport prices that fell 1 percent to its lowest annual rate since July 2009. Cost of clothing and footwear rose marginally by 0.2 percent and prices of recreation and culture increased 0.6 percent. Food prices slowed to its lowest since February of 2010 (1.7 percent) and cost of furniture and household goods increased 1.1 percent.  

Upward pressures came from education cost (+10.3 percent yoy); tobacco and alcoholic beverages (+5 percent yoy); health cost (+3.4 percent); housing, water, electricity and gas prices (+3.1 percent) and restaurants and hotels (+2.6 percent). 

On a monthly basis, the inflation rate slowed to 0.2 percent, following a 0.5 percent increase in February. 

Core CPI increased 1.6 percent year-on-year, down by 1 percentage point from February’s figure. 

UK Inflation Rate Slows Further in March

ONS | Joana Taborda |
4/15/2014 9:54:25 AM