Wed, 16 Apr 2025

Wed, 16 Apr 2025 Falling petrol prices push UK inflation down

Inflation falls in the year to March as the price of petrol drops.

* UK inflation rate fell to 2.6% in March, lower than expected, driven by falling petrol prices and a drop in recreation and culture prices.
* The fall in inflation may be temporary as analysts expect it to spike to around 3% in April due to rising bills and higher business costs.
* Wages continue to outpace inflation, with an average rise of 5.9% in March, but this growth is slowing down.
* The Bank of England's interest rate setting Monetary Policy Committee may be encouraged to cut its key interest rate when it meets next month due to low inflation and economic pressure from Donald Trump's tariffs.
* Experts predict inflation will fall to near its 2% target by 2026, but the forecast remains uncertain due to a "volatile" global economy.
* The government welcomes the drop in inflation but acknowledges that there is more work to be done to address the cost of living crisis.
* Shadow Chancellor Mel Stride criticizes the government's economic policies for driving up the cost of living and urges it to make trade deals with European and Commonwealth allies.
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