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- UK consumer price growth slowed in line with forecasts in March
UK consumer price growth slowed in line with forecasts in March
According to the report from Office for National Statistics (ONS), the Consumer Prices Index (CPI) 12-month rate was 1.5% in March 2020, down from 1.7% in February. Economists also expected a 1.5% increase.
The Consumer Prices Index including owner occupiers' housing costs (CPIH) 12-month inflation rate was 1.5% in March 2020, down from 1.7% in February 2020.
The largest contribution to the CPIH 12-month inflation rate in March 2020 came from housing, water, electricity, gas and other fuels (0.51 percentage points). Falls in the price of motor fuels and clothing resulted in the largest downward contributions to the change in the CPIH 12-month inflation rate between February and March 2020. Rises in air fares produced the largest, partially offsetting, upward contribution to change.
A separate ONS report showed that the headline rate of output inflation for goods leaving the factory gate was 0.3% on the year to March 2020, down from 0.5% in February 2020.
The price for materials and fuels used in the manufacturing process displayed negative growth of 2.9% on the year to March 2020, down from negative growth of 0.2% in February 2020.
Petroleum products made the largest downward contribution to the change in the annual rate of output inflation.
Crude oil provided the largest downward contribution to the change in the annual rate of input inflation.
Crude oil prices have seen a record fall on the month, driven by factors including reduced global demand during the coronavirus (COVID-19) pandemic and OPEC+ failing to agree to cut supply.
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