Britain's CPI Sees Slowdown in March
(MENAFN) Britain's Consumer Price Index (CPI) experienced an unanticipated decline in March, providing a momentary respite from inflation, though future price increases are anticipated to return.
Data from the Office for National Statistics (ONS) revealed that the CPI dropped to 2.6 percent in March, down from 2.8 percent in February, exceeding market predictions of 2.7 percent. This reduction was largely attributed to decreased costs in entertainment, culture, and gaming.
In spite of this easing, several banks are increasing their savings rates. National Savings and Investments, the UK government's savings bank, has elevated its two-year bond interest rate from 3.6 percent to 4 percent and its three-year bond rate from 3.5 percent to 4.1 percent.
Nevertheless, analysts believe that the decline in inflation observed in March will be short-lived. Starting in April, rising expenses—including increases in water bills, council tax, communication charges, and energy prices—are expected to drive inflation upward once again.
The ONS cautioned that these escalating household expenses could reverse the current downward trend. Ofwat, the water regulator, has forecasted a 36 percent rise in average household water bills in England and Wales over the next five years, which would add over £10 (approximately $13.30) to monthly expenses. Additionally, energy regulator Ofgem has increased the domestic energy price cap by 6.4 percent effective April 1.
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