Data from official figures reveal that inflation has fallen to its lowest level in two-and-a-half years, primarily driven by slow food price increases. According to the statistics, the prices rose by 3.2% in March, which decreased from 3.4% in February. The cost of household items such as cleaning products, furniture, crumpets, chocolate biscuits, and meat has also fallen; however, fuel costs rose. The inflation rate decline does not imply a fall in prices overall; it only implies that prices are rising at a slower pace in comparison to recent years.
Meat prices dropped by 0.5% between February and March, primarily due to a reduction in the cost of pork, a decline from a 1.4% increase the previous year. Furniture and household goods prices, including cleaning products, also decreased by 0.9% between March 2023 and March 2024. While the overall inflation rate has gradually decreased since it peaked at 11.1% in late 2022, goods in the shops are still much more expensive than they were two years ago.
Soaring food and energy bills have been the main factors influencing the UK’s high inflation rate in recent years. Inflation reached almost 20% in 2023 for food and non-alcoholic beverages, which is the highest rate observed since the 1970s. The United States’ inflation rate is now higher than the UK’s, with consumer prices rising faster than anticipated.
Economists anticipate that inflation will return to its 2% target later this spring, indicating that there could be possible interest rate reductions from June onwards. Despite the latest official figures being described as “good news” by Chancellor Jeremy Hunt, shadow chancellor Rachel Reeves argues that people will still feel worse off, and liberal democrat Treasury spokesperson Sarah Olney criticized the government for being “out of touch.
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