Forex News

UK CPI inflation falls to the lowest since December

UK CPI inflation falls to the lowest since December

U.K. consumer prices for March fell the lowest level since December as the restrictions imposed by the British government to contain the spread of Covid-19 weighed on demand for some goods.

The CPI inflation measure saw a deceleration to 1.5 percent in the year ended March, moving in line with forecasts, down from a previous of 1.7 percent, data from the Office for National Statistics showed Wednesday.

The drop in the prices of clothing and motor fuels offset price increases in air fares, the ONS said.

“Consumer behaviours and retailers’ expectations of that behaviour might have changed as a result of social distancing and other precautions,” the ONS said.  

The ease in inflation should give some relief to households currently suffering from the impact of the Covid-19 outbreak, which resulted in a lockdown in the United Kingdom.

The annual core CPI also decelerated from 1.7 percent in February to 1.6 percent last month.

As of 06:55 GMT, the pound traded higher for the first time in three sessions versus the U.S. dollar at 1.2310.

Share Article