Investing.com - Consumer price inflation in the U.K. rose in line with expectations in March, accelerating for the first time in six months, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 3.5% in March from 3.4% in February, broadly in line with market expectations.
U.K. consumer prices rose for the first time since September. Last month, inflation eased to the lowest level since November 2010, after rising to a record-high 5.2% in September 2011.
Month-over-month, consumer price inflation rose 0.3%, in line with expectations, after rising 0.6% in February.
The rate of inflation remains above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose unexpectedly to a seasonally adjusted 2.5% in March from 2.4% in February.
The core CPI reading rose for the first time since October.
According to the ONS, the biggest upward pressure on consumer prices was from food, clothing, recreation and culture.
The largest downward driver came from utility, fuels and transport prices.
The retail price index eased to 3.6% last month, in line with expectations after rising 3.7% in February.
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD climbing 0.28% to trade at 1.5943.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.55%, the EURO STOXX 50 rallied 1.15%, France’s CAC 40 advanced 1%, while Germany's DAX added 0.85%.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation accelerated to 3.5% in March from 3.4% in February, broadly in line with market expectations.
U.K. consumer prices rose for the first time since September. Last month, inflation eased to the lowest level since November 2010, after rising to a record-high 5.2% in September 2011.
Month-over-month, consumer price inflation rose 0.3%, in line with expectations, after rising 0.6% in February.
The rate of inflation remains above the Bank of England’s 2.0% target. The BOE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose unexpectedly to a seasonally adjusted 2.5% in March from 2.4% in February.
The core CPI reading rose for the first time since October.
According to the ONS, the biggest upward pressure on consumer prices was from food, clothing, recreation and culture.
The largest downward driver came from utility, fuels and transport prices.
The retail price index eased to 3.6% last month, in line with expectations after rising 3.7% in February.
Following the release of that data, the pound added to gains against the U.S. dollar, with GBP/USD climbing 0.28% to trade at 1.5943.
Meanwhile, European stock markets remained broadly higher. London’s FTSE 100 rose 0.55%, the EURO STOXX 50 rallied 1.15%, France’s CAC 40 advanced 1%, while Germany's DAX added 0.85%.