Wed, 16 Apr 2025

Wed, 16 Apr 2025 Why are prices rising in the UK?

The rate at which prices are rising remains above the Bank of England's 2% inflation target.

* UK inflation rate fell to 2.6% in the 12 months to March, down from 2.8% in February.
* This is less than expected and lower than the Bank of England's target of 2%.
* The drop was driven by a fall in petrol prices.
* Inflation has fallen significantly since hitting 11.1% in October 2022, but still remains above its long-term average.
* The Bank of England cut interest rates three times since August 2024 to try and control inflation.
* Despite the rate cuts, the Bank expects inflation to rise again in 2025 due to higher energy prices.
* The UK's main inflation measure is the Consumer Prices Index (CPI), which was 2.6% in March.
* Core inflation, which excludes food and energy prices, was 3.4% in January, down from 3.5% in February.
* Regular pay in Great Britain grew by more than inflation between December and February, with average annual growth of 5.9%.
* The US inflation rate fell to 2.4% in March, but still remains above its target of 2%.
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