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.

Related Posts


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

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

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...