London, Consumer prices rose by 7.0% in March, the highest rate since March 1992 and up from 6.2% in February, official figures show. This makes the cost of living squeeze even worse for families.
Most economists polled by Reuters had predicted that the annual rate of CPI would rise by 6.7%, but it rose by 6.8% instead.
This is what the Office for National Statistics’ chief economist, Grant Fitzner, said: “Broad-based price increases again caused annual inflation to rise sharply again in March.” Prices for furniture and petrol went up the most, despite the recent cut in fuel duty, while prices for petrol went up the least.
Over the past year, inflation in Britain has risen at an unprecedented rate, following the same pattern as most other advanced economies. Energy prices rose, and supply-chain problems from the pandemic kept on going.
On Feb. 24, Russia invaded Ukraine, which raised energy prices. The Office for Budget Responsibility said last month that CPI would hit 8.7% in the last three months of 2022.
On May 5, after its next meeting, the Bank of England is almost certain to raise interest rates to 1 percent from 0.75 percent. Many economists say it will not move that quickly, but the market thinks it will.
It’s the biggest squeeze on British household incomes since records began in the late 1950s, thanks to faster inflation and more payroll taxes. There are a lot of people who think the economy will slow down a lot this year.
Core CPI, which doesn’t include prices for food, energy, alcohol, or tobacco, rose to 5.7% in March from 5.2% in February.
Retail price inflation, which the ONS says isn’t accurate but is used in many commercial contracts and to set interest payments on inflation-linked government bonds, rose to 9.0%, its highest level since 1991. This is the highest rate since 1991.
Manufacturing prices rose by 11.9 percent in the year to March, the highest rate since September 2008.This was the first sign that prices were going to rise even more.
The cost of raw materials went up by 19.2%, which is the biggest increase in recorded history. It started in 1997.
