UK Inflation Slows Less Than Expected

London, (APP - UrduPoint / Pakistan Point News - 17th Apr, 2024) Britain's annual inflation rate fell less than expected last month, according to official data Wednesday that could cloud the outlook for interest rate cuts and cause more pain for the government.

The Consumer Prices Index dropped to 3.2 percent in March, the lowest level since September 2021, the Office for National Statistics (ONS) said.

Markets, however, had expected a rate of 3.1 percent in March.

Inflation rose 3.4 percent in the 12 months to February, the ONS added in a statement.

"Inflation eased slightly in March to its lowest annual rate for two-and-a-half years," ONS chief economist Grant Fitzner said.

"Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.

"Similarly to last month, we saw a partial offset from rising fuel prices," he added in the ONS release.

Finance minister Jeremy Hunt described the latest drop as "welcome news".