Inflation has dropped more than expected and for the second consecutive month, according to official figures.
The measurement of the Consumer Price Index (IPC) fell to 2.6% in March, compared to 2.8% in February and 3% in January, according to Office for National Statistics (ONS) data.
This means that prices have been increasing at the slowest rate since December and closest to the target of 2% of the Bank of England.
The rate is also lower than expected by economists interviewed by Reuters, who provided for an inflation of 2.7%.
But the decline should be short -lived while a series of Bill Rises was launched in early April.
The tax invoices of energy, water and council increased throughout the United Kingdom at the beginning of this month.
Why did inflation drop?
It was a reduction in fuel costs, thanks to a drop in oil prices which resulted in a drop in surprise, combined upwards the prices of unchanged food.
The price of games, toys and hobbies, as well as data processing equipment, all fell.
These decreases have thwarted a “sharp” increase in the price of clothing, according to the ons.
The late Easter calendar also meant compared on March 2024 – as does the ons with its annual rise in power – with Mars 2025 does not compare as with.
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Easter and the associated school break bring things like higher air rates and hotel costs, which was not seen last month as the party takes place in April of this year.
What does this mean for interest rates?
All inflation measures have dropped, in an increase in the Bank of England while they are thinking about lower interest rates.
A key to assessing price increases, central inflation, which excludes volatile prices such as fuel and food, fell to 3.4%.
It is closely monitored by the prices of the Bank of England, which meet next month and should largely make loans cheaper by bringing interest rates to 4.25%.
Another important measure – inflation of services – fell to 4.7% of 5% in February. As a predominantly based on services, a drop in this rate is good news for central bankers and households.
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Inflation data, combined with factual work Vacancies are at pre-pale levels For the first time since 2021, traders are now waiting for four interest rate drops this year, which would bring the basic interest rate to 3.5% by December.