UK inflation rate falls to 3.2%, the lowest level since late 2021 amid easing food prices

Inflation in the UK fell to its lowest level in two and a half years in March amid further easing in food prices. Consumer prices in the UK rose by 3.2% in the year to March, the lowest level since September 2021, falling from 3.4% in February, the Office for National Statistics said. 

UK inflation rate fell less than expected last month as economists predicted a 3.1% inflation rate for the month, AP reported.

However, UK inflation is still higher than the Bank of England’s target of 2% but the direction of the move appears clear. 

Also Read: US Fed Chair Jerome Powell signals delayed interest rate cuts amid high inflation

The country’s consumer prices index inflation hit a high above 11% at the end of 2022 in the wake of Russia’s invasion of Ukraine.

Inflation is set to fall further in April, possibly to below 2%, as a result of sharply lower domestic energy bills, which economists think could prompt rate-setters at the Bank of England to consider a cut in interest rates in the next few months from the current 16-year high of 5.25%, AP reported. 

However, nine policymakers have warned that the fight against inflation isn't over yet as they expect prices to start rising again in the second half of the year.

(With inputs from AP)