Breaking Stories

Inflation Rises in the UK, Driven by Oil and Clothing Prices

Inflation Increase UKAccording to data released by the Office for National Statistics, the Consumer Price Index stood at 0.7 percent in March (year-to-year), lower than expected as the analysts foresaw it to be at 0.8 percent and after being at 0.4 percent in February. In monthly terms, the Consumer Price Index stood at 0.3 percent, in line with the analysts’ expectations, and after being at 0.1 percent the previous month.

Excluding food and energy prices, the consumer price index stood at 1.1 percent (Year-to-Year), in line with the analysts’ expectations and below February’s 0.9 percent. In monthly terms, it went up more than expected, at 0.4 percent, after being at 0.3 percent in the previous month. The analysts expected it to be at 0.1 percent.

Advertisement

The Retail Price Index stood at 1.5 percent in March (Year-to-Year), after being at 1.4 percent the previous month and rising lower than expected, as the surveyed analysts’ expected it to be at 1.6 percent. In monthly terms, it rose by 0.3 percent, in line with the analysts’ expectations and below the previous month’s 0.5 percent.

Price levels rose mainly because global oil and clothing prices went up, and are expected to keep rising now that the economy is reopening. However, the price level remained somewhat subdued because of lower food prices.

“The rate of inflation increased with petrol prices rising and clothes recovering from the falls seen in February,” stated the Office for National Statistics in its report.

Even though prices are expected to rise, they are not expected to do so as much as the United States. According to a Bank of England’s forecast, inflation is expected to rise to 1.9 percent by the end of the year, while other analysts believe it could exceed the 2 percent level. This rise in prices is expected to be caused by an increase in clothing and food services now that the economy is coming back to normal, as well as increased spending by households, which are expected to spend some of their pandemic savings.

The UK government continues struggling against the spread of the coronavirus, being one of the most affected countries in Europe. Since the beginning of the pandemic, 4,393,307 covid-19 cases have been reported in the UK, as well as 127,307 deaths. So far, around 10 million people have gotten their second dosage of the vaccine.

By 9:11 GMT the Pound Sterling went down by 0.01 percent against the US Dollar, falling to the 1.3934 level.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *