Inflation in the UK has fallen back in the year to March but remains in double digits at 10.1%, the Office for National Statistics (ONS) has revealed.
The latest consumer prices index (CPI) data confirmed that the rate of inflation had decreased from 10.4% in the year to February, back to the level it was in January at 10.1%. CPI inflation in the UK hit a recent peak of 11.1% in October last year.
On a monthly basis, inflation climbed by 0.8% in March 2023, which compares with a rise of 1.1% in March 2022.
The ONS reported that largest downward contributions to the monthly change in the CPI annual rate came from motor fuels, and housing and household services, particularly liquid fuels. It was partially offset by upward contributions from food, as well as recreation and culture.
Managing director of capital markets and finance at LiveMore, Simon Webb, said that despite a fall in inflation, the UK economy is “not out of the woods yet”.
“Inflation has been in double digit figures since last September and it is still stubbornly there but a fall, even if only by 0.3%, is better than nothing,” Webb said. “Let’s hope this is the start of the downward trajectory towards the 2% target.
“But we are not out of the woods yet. Food inflation is still exceptionally high, as are energy prices although they have come down, but the energy market is very volatile so there is still price uncertainty. On the other hand, the fall in the cost of petrol bodes well for inflation if it continues to drop.
“Looking to what this will do with regards to the BoE base rate decision next month, the Bank has said it will be data driven and the next meeting is still a number of weeks away, but it is safe to say the days of higher interest rates will be around for quite a while yet.”
CEO at fintech broker Loan.co.uk, Paul McGerrigan, commented: “Many in the UK, not least at Number’s 10 and 11, will breathe a sigh of relief at the news inflation is back on a moderate downward trajectory following February’s shock increase.”
He added: “We expect the UK economy is heading for an upturn, with much lower inflation and perhaps even interest rate reductions in the latter part of this year but after the events of the last three years nothing can be taken for granted. It’s still a bumpy path for borrowers and expert financial advice is critical.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories