The Consumer Price Index (CPI), a measure of UK inflation, rose to 2.6% year-on-year in March, according to data released by the Office for National Statistics (ONS) this morning, compared to 2.8% in February, exceeding expectations of 2.7% growth.
On a monthly basis, the CPI rose by 0.3% in March, compared to a rise of approximately 0.6% in March 2024.
The core CPI, which excludes food, energy, alcohol, and tobacco prices, rose to 3.4% in March from 3.5%, matching analysts’ expectations.
The largest contributors to the slowdown in inflation in March came from the recreation and culture, motor fuel, and housing and household services sectors, while the largest upward contribution came from the clothing sector.