UK inflation eases to 2.6% in March

Inflation in the United Kingdom eased to 2.6% in March, primarily due to declining fuel prices and steady food costs. However, clothing prices saw a notable increase after an unexpected decline in February.

Data released by the Office for National Statistics today, April 16, revealed that consumer prices in the United Kingdom rose by 2.6% in March, slightly below the anticipated 2.7% increase, following a 2.8% uptick in February.

The core Consumer Price Index (CPI), which excludes the volatile prices of energy and food, saw a 3.4% year-on-year (YoY) increase in March, a slight decrease from the 3.5% recorded in February.

The latest projections from the Bank of England indicate that inflation might reach a peak of 3.7% in the third quarter of 2025, nearly double the targeted 2%.

Expectations are that the bank will reduce interest rates at its upcoming meeting on May 8, having maintained them at 4.5% during March session. This decision comes amidst concerns about escalating inflation and uncertainties surrounding economic growth and global trade, largely influenced by the tariffs imposed by President Donald Trump.