UK inflation in March 2025

The annual inflation rate in the United Kingdom fell to 2.6 % in March, reaching less than analysts’ expectations, according to data issued by the National Statistical Office (ONS) on Wednesday.

The economists of Reuters expected the consumer price index to reach 2.7 % in the twelve months until March.

Britain’s price rate increased by 2.8 % in February, after a sharp increase to 3 % in January.

The basic inflation, which excludes the prices of more volatile energy, food, alcohol and tobacco, increased by 3.4 % per year to March, a slight decrease from 3.5 % in February.

The largest declining contributions to the monthly change in the rate of inflation from entertainment, culture, and motor fuel, came. Ons saidWhile the largest upward driver was clothes.

sterling It increased by 0.25 % against the US dollar at $ 1.3265, after issuing data.

The latest data will be closely analyzed by the Politics makers at the Bank of England, who is expected to reduce interest rates when they spend on May 8. Bank of England held 4.5 % rates in its previous meeting in March, amid the expected inflation and uncertainty in economic growth and global trade under the leadership of US President Donald Trump.

There was good news for the United Kingdom last week, when the latest monthly growth data showed that the British economy grew 0.5 % on a month in February. The UK also hopes to sign a trade deal with Washington, after it has escaped relatively safely from the Trump tariff system with the foundation line by only 10 % on imports to the states.

Traders will closely consider in the upcoming policy statement of England on Thursday for assessing the country’s economic expectations.

In a statement issued in March, the central bank said, “It has intensified uncertainty in the World Trade Policy, and the United States has issued a set of customs tariffs ads to which some governments have responded.”

He added: “There have been increased cases of other geopolitical uncertainty as well, and indicators of financial market fluctuations in the world increased.”

Bouquet It warned in February that it is expected that inflation will rise temporarily to 3.7 % In the third quarter of this year, where energy costs are accelerated. At that time, she also displaced her 2025 growth expectations for the United Kingdom to 0.75 %.

Ruth Gregory, a UK’s chief economist in Capital Economics, was among the analysts, noting that the slowdown in inflation was not expected to continue.

“The decrease … will not last for a long time, with inflation to about 3.5 % in the coming months. But we believe that the weak economy will eventually cancel inflation and that the trauma of customs tariffs has allowed the risk balance towards low inflation and faster interest rates,” she said in the comments on Wednesday.

“At the present time, we are committed to our opinion that inflation will gradually decrease to 2.0 % in 2026. But it seems that the risks facing these expectations have increased to the negative side,” she added.