Inflation fell by 0.4% to 4% in March as the cost of food and drink lowered, but it is still double the Bank of England's target.
The fall in the consumer price index (CPI) is the first for eight months and marks a drop from the 28-month high of 4.4% in February. Jeremy Cook, chief economist at World First foreign exchange, says March's lower inflation figure leaves "no illusion" of an interest rate rise before August. By far the largest downward pressure to the change in CPI came from food and non-alcoholic beverages, where prices fell by 1.4% between February and March this year. Sterling dropped as much as 0.5% against the dollar on the news. It was at $1.6249 as of 9:33am in London, down 0.6% from yesterd...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes