UK inflation falls less than expected over March to 3.2%

‘Signs of deeper persistence’

The Consumer Prices Index (CPI) rose by 3.2% on a yearly basis in March, down from 3.4% in February, but higher than the 3.1% forecast by economists.

In a statement published today (17 April), the Office for National Statistics said the easing in the rate between March and February was due to prices rising by 0.6% on the month, compared to a 0.8% rise in the previous year. Core inflation, which excludes energy, food, alcohol and tobacco, fell from 4.5% in February to 4.2%. UK inflation beats expectations as it drops to 3.4% Michael Brown, senior research strategist at Pepperstone, said the figures indicate that progress is being made towards reaching the Monetary Policy Committee's 2% target, and this needs to continue to keep t...