UK inflation falls to lowest in 12 months

By Gokhan Kurtaran

LONDON

Britain’s consumer price index (CPI) 12-month rate was 2.5 percent in March, down from 2.7 percent in February, according to Office National Statistics (ONS) data released on Wednesday.

Since reaching a recent high of 2.8 percent towards the end of 2017, the rate has fallen back to its lowest since March 2017.

“The largest downward contribution to the change in the rate between February 2018 and March 2018 came from prices for clothing and footwear rising by less than they did a year ago, with the effect coming mainly from a range of items of women’s clothing,” said the ONS.

The inflation slowdown is expected to ease the pressure over the household income squeeze.

Economists expect the Bank of England next month to increase its policy rate from 0.50 percent to 0.75 percent.