CPI inflation up 0.1%

THE headline rate of inflation rose to 3.5% in March.

Figures published this morning showed CPI inflation rose by 0.1%.

The new figure raises questions over whether the increase in prices will slow as quickly as the Bank of England has forecast.

The Office for National Statistics said the largest upward pressures on the CPI rate came from food, clothing and recreation and culture.

Partially offsetting these factors were downward pressures from electricity, gas and other fuels and transport.

The RPI annual inflation rate dropped by 0.1% in March to 3.6%.

The Bank of England has predicted CPI inflation will drop rapidly this year and has previously expressed concern it may even fall below the 2% target.

However, the minutes of the Monetary Policy Committee last month showed that concerns over rising oil prices had played a part on its decision not to further expand its quantitative easing programme.

Source : Ian Briggs - The BusinessDesk
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