Movement influenced by fall in energy prices
The United Kingdom’s annual inflation rate is poised to fall below 10 per cent for the first time since last August.
The latest official figures for the cost of living are to be released later today. The fall in inflation comes amid a sharp decline in energy prices, which is thought likely to have dragged down inflation from 10.4 per cent in February to 9.8 per cent in March, according to a poll of economists conducted by Reuters.
The Bank of England, which is responsible for hitting the official 2 per cent inflation target, believes there will be a further fall over the coming months as the impact fades of last year’s invasion of Ukraine by Russia.
The consumer prices index rose by 1.1 per cent in March alone last year, followed by a further 2.5 per cent increase in April with the price of gas on global wholesale markets now lower than it was before the war began in February 2022.
Even if the economists’ prediction proves accurate, UK inflation will remain markedly higher than in the US and the Eurozone, where it currently stands at 5 per cent and 6.9 per cent respectively.
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