Consumer Price Index (CPI) inflation or retail inflation for the month of March 2017 stood at 3.81%, said Ministry of Statistics and Programme Implementation (MOSPI) on Wednesday. March 2016’s figure encompassed the rise in flight costs associated with the holiday, but a later Easter in 2017 means the seasonal price rises will be included in April’s figures instead.
Chinese consumer prices rose at a subdued pace for a second month in March, held back by cheap food, clothing and other manufactured goods.
But the result of fast rising inflation in recent months has squeezed household spending.
“The small upside surprise from wages has boosted sterling, but the details look much less impressive”.
Property values increased by 5.8% year-on-year to reach a record of £218,000 typically across the United Kingdom, figures compiled jointly by the Office for National Statistics (ONS), the Land Registry and other bodies show.
Last year’s yearly inflation came to 2 percent, below the official 3-percent target. The pause, revealed in figures published yesterday, was expected but hinted at underlying inflationary pressures as Easter came early past year, driving up spending in March.
Rising inflation, which is tipped to grow further this month as the later Easter is reflected in air fares, puts pressure on the Bank of England to raise interest rates but policymakers have signalled concerns that such a move could put a choke on growth in the economy. The National Bank of Rwanda (BNR) recently attributed the rising inflationary pressures to rising food prices due to bad weather conditions and transport inflation.
The main driver of the 5.8% annual increase in house prices was England, where values increased by 6.3% over the year to February to reach £234,000 on average.
He added: “While the annual rate of CPI inflation remained unchanged in March, that conceals different trends within goods and services”.
The Retail Prices Index (RPI) measure of inflation fell to 3.1% last month, from 3.2% in February.
Analysts are split on whether United Kingdom inflation has peaked as the ONS confirms that it remained at 2.3 per cent in March, the same level as a month earlier.
Still-modest consumer inflation and moderating producer prices will give policymakers room to continue with a gradual pace of monetary policy tightening as they try to contain risks from years of debt-fueled stimulus without crimping economic growth.
Though still quick, it suggests that reflationary spurt caused by higher commodity prices since the beginning of previous year has now past its cyclical peak.