UK inflation remained at double-digits in March, with consumer price index (CPI) rising by an annual 10.1%, according to the Office for National Statistics (ONS). The figure was higher than the Reuters consensus of 9.8%. The CPIH rose by 8.9% in the period to March 2023, down slightly from 9.2% in February but above expectations. Core CPIH, however, rose by 5.7% over the 12 months, maintaining February’s annual increase. Price pressures were recorded on household services, food and non-alcoholic beverages, with prices of the latter rising by 19.2%, the sharpest in more than 45 years. Bank of England raised its interest rates to 4.25% by 25 basis points last month, with a further quarter-point hike being highly probable at the Monetary Policy Committee’s meeting on 11 May. The Bank faces the tough task of balancing inflation and a flatlining economy.
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