UK inflation slowed to 2.6% in March, but big jump expected next month

UK inflation came in lower than analysts expected in March, but is a spike on the horizon?

Summary

  • UK inflation slowed to 2.6% in March, down from 2.8% in February.
  • The reading came in lower than analysts had forecast. Estimates pointed to a reading of 2.7%.
  • A drop in the inflation rate does not indicate that prices fell in March, but that they rose at a slower rate.
  • The slowdown could be short-lived though. Inflation is expected to jump to 3.6% in April, according to Bank of England forecasts.
  • This could create a short window of opportunity for the Monetary Policy Committee (MPC) to cut interest rates when it next meets on 8 May.
  • Earlier this month, markets started forecasting a faster pace of interest rate cuts as Donald Trump’s trade war heated up.
Refresh

Hello and welcome. Tomorrow is inflation day.

Inflation expected to slow to 2.7%

The calm before the storm?

How will Trump’s tariffs impact inflation?

Capital Economics: “The US trade war may prove disinflationary for the UK”

UK labour market is weakening

Rising cost of employment is a “major challenge” for businesses – will it translate into higher prices?

How many times will the Bank of England cut interest rates this year?

The path of UK inflation

Tell us what you think

Good morning and welcome to our live blog. In just over an hour, the latest inflation figures will be published. To recap, analysts are expecting a reading of 2.7% today, a slight slowdown compared to February's report (2.8%).

March's inflation report will be published in around five minutes. Stick with us for live reaction and what it means for your finances.

BREAKING: UK inflation slowed to 2.6% in March

What drove the inflation drop?

Core and services inflation both lower

"A temporary reprieve"

What does today's inflation reading mean for mortgage rates?

What does a drop in the inflation rate mean for savers?

Inflation: big drops to pizza, quiches and musical instruments

Annual house price inflation 5.4% in February

Will stamp duty changes dampen the housing market?

Back to inflation... households grapple with higher bills

UK continues to face "stickier inflationary pressures"

Thank you for following our live coverage of inflation today. The next CPI figures will be released on 21 May. We will be live blogging again then. In the meantime, look out for our live coverage of the Bank of England's next interest rate meeting on 8 May.