Investing.com – Consumer price inflation in the U.K. rose less-than-expected in March, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation fell to a seasonally adjusted 4% in March, down from 4.4% in February.
Analysts had expected U.K. consumer prices to rise by 4.4% in March.
The rate of inflation was double 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.
According to the report, the main factors affecting CPI were a decline in food prices, which offset households' higher utility bills.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose less-than-expected in March, increasing to a seasonally adjusted 3.2%, after rising by 3.4% in February.
Analysts had expected U.K. core CPI to increase by 3.4% in March.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.62% to hit 1.6244.
Meanwhile, European stock markets were down. The FTSE 100 shed 0.75%, the EURO STOXX 50 slipped 0.62%, France’s CAC 40 dropped 0.83%, while Germany's DAX was down 0.72%.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation fell to a seasonally adjusted 4% in March, down from 4.4% in February.
Analysts had expected U.K. consumer prices to rise by 4.4% in March.
The rate of inflation was double 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.
According to the report, the main factors affecting CPI were a decline in food prices, which offset households' higher utility bills.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose less-than-expected in March, increasing to a seasonally adjusted 3.2%, after rising by 3.4% in February.
Analysts had expected U.K. core CPI to increase by 3.4% in March.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.62% to hit 1.6244.
Meanwhile, European stock markets were down. The FTSE 100 shed 0.75%, the EURO STOXX 50 slipped 0.62%, France’s CAC 40 dropped 0.83%, while Germany's DAX was down 0.72%.