You are here: Home - Uncategorized -

Inflation dips to 4% in March

Written by:

Inflation fell by 0.4% to 4% in March as the cost of food and drink lowered, but was still double the Bank of England’s target. The fall in the consumer price index (CPI) marks a drop from the 28-month high of 4.4% in February.

By far the largest downward pressure to the change in CPI came from food and non-alcoholic beverages, where prices fell by 1.4% between February and March this year.
This compared with a rise of 0.3% between the same two months a year ago.
The fall in CPI will give a boost to Bank Governor Mervyn King, who has resisted increasing pressure to raise the base interest rate from its record low to curb rising inflation.
The Bank held fire on rates this month, keeping them at 0.5% and opting to wait for clearer signs of recovery before following the European Central Bank (ECB) in a hike.
Earlier this month the ECB increased the cost of borrowing by 0.25% to 1.25% in its first rate rise in three years, despite the EU having a much smaller inflation problem than the UK.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Stamp Duty rise ‘will have little impact’

Stamp Duty has risen to 5% for residential properties valued at more than £1m from today, but the increase will...