Wed, 16 Apr 2025

Wed, 16 Apr 2025 UK inflation rate has fallen. Here's why it won't last long

Economic uncertainty globally and in the UK means there are conflicting forces at play with prices.

* Inflation rate has eased for the second month in a row, with prices rising at an annual rate of 2.6% in March.
* However, analysts predict that inflation will rise due to: + Household bills increasing in April, including utilities and council tax. + Employer National Insurance contributions rising in April, leading businesses to increase prices. + US tariff policy changes affecting global trade and potentially leading to higher taxes on goods.
* The UK may see limited price rises due to the 10% tariff on UK goods imported by the US being lower than feared.
* China's massive tariffs on its goods bound for the US could lead to cheaper Chinese products entering the UK market, increasing competition and slowing inflation.
* The UK economy has shown sluggish growth, with some predicting a recession.
* The Bank of England is under pressure to cut interest rates to boost growth, but this could raise prices and inflation further.
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