UK inflation, March 2024

Inflation in the United Kingdom returned to 3.2% in March, the Office for National Statistics announced on Wednesday.

That’s slightly higher than surveyed economists’ forecast of 3.1%, but down from 3.4% in February.

The base figure, excluding energy, food, alcohol and tobacco, stands at 4.2%, compared to a forecast of 4.1%.

This week, investors have been watching for signs of a slowdown in the UK jobs market, with the unemployment rate unexpectedly rising to 4.2% between December and February. Wage growth excluding bonuses increased from 6.1% in January to 6% in February.

Bank of England Governor Andrew Bailey said on Tuesday he had seen “strong evidence” that rising interest rates were helping to curb price rises, which have slowed from a peak of 11.1 % in October 2022. The central bank’s own forecasts are in favor of inflation. to “briefly fall” to its 2% target in the spring before rising slightly.

Market prices currently suggest that the BoE will implement two interest rate cuts in 2024 from its current rate of 5.25%, starting in August or September. Market uncertainty over this timetable has now increased, given signs of continued inflationary pressures in the United States.

This is breaking news and will be updated shortly.