LONDON, (MILLAT ONLINE/APP/AFP) – Rising clothing and food prices kept
British annual inflation at its highest level in three and a half years in March, official data showed on Tuesday.
The 12-month inflation rate stood at 2.3 percent last month, the same
rate as in February, the Office for National Statistics (ONS) said in a statement.
That was broadly in line with expectations. The last time British
inflation was higher was in September 2013.
The impact of higher clothing and food prices, along with alcohol and
tobacco, were largely offset by lower transport costs — and air fares in
particular.
“The costs of raw materials and the price of manufactured goods
leaving factories were both little changed, as falling fuel prices helped stem further rises,” said ONS statistician Jonathan Athow.
The pound jumped against the dollar immediately after the data
release, but has since handed back gains.
Inflation has now stood above the Bank of England’s 2.0-percent
target level for the last two months.
“March’s headline inflation figure in the UK … flattened out at 2.3
percent and the Bank of England is unlikely to change its unhurried approach to raising headline interest rates from their current record low of 0.25 percent,” noted AJ Bell investment director Russ Mould.