How inflation drop to 10.1% will impact your household budget, savings and mortgages over next few weeks
dailyrecord.co.ukUK inflation slowed last month on the back of lower petrol prices but remained in double figures as household budgets continue to come under pressure.
The latest figures from the Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) inflation fell to 10.1 per cent in March from 10.4 per cent in February.However, it remained higher than experts had predicted as food and drink prices continued to soar - economists had forecast it would be 9.8 per cent.
ONS chief economist Grant Fitzner, said: “Inflation eased slightly in March, but remains at a high level.“The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year.
Clothing, furniture and household goods prices increased, but more slowly than a year ago, these were partially offset by the cost of food, which is still climbing steeply, with bread and cereal price inflation at a record high.”Alice Haine, Personal Finance Analyst at Bestinvest, the DIY investment platform and coaching service, explained that decreasing inflation will come as a relief for households, offering hope that the financial squeeze is finally starting to ease up, although double-digit inflation won’t deliver much relief to wallets and purses just yet as “prices are still rising at rates that would have seemed extraordinary at the start of last year”.Food and non-alcoholic beverages rose by a staggering 19.2 per cent in the year to March, up from 18.2 per cent in February - the highest annual rate for over 45 years.Alice said: “Disposable incomes are still very much under the cosh.
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