Investing.com - Consumer price inflation (CPI) in the U.K. increased more than expected in March, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation rose from the year before by a seasonally adjusted 2.3% last month, in line with forecasts and the prior month’s reading. This remained the highest year on year level since September 2013.
Month-over-month, consumer price inflation rose by 0.4% in March, compared to the prior month’s 0.7% advance and forecasts for a 0.3% gain.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.8% last month, lower than forecasts for a gain of 1.9% and the 2.0% advance in February.
The retail price index (RPI) increased 3.1% in March, after rising by 3.2% the previous month. Analysts had expected a gain of 3.2%.
Month-on-month, RPI increased by 0.3% in March, compared to a 1.1% advance in the prior month. Analysts had expected a 0.4% rise.
Core RPI increased at an annualized rate of 3.4% in March, after rising by 3.5% the previous month. Economists had expected a gain of 3.5%.
Month-on-month, core RPI increased 0.3% last month, compared to February’s 1.1% rise.
The data also showed that the house price index rose 5.8% in March, below forecasts for a gain of 6.1% and following a 5.3% increase a month earlier. February’s data was revised from an initial 6.2% rise.
“Rising prices for food, alcohol and tobacco, clothing and footwear, miscellaneous goods and services were the main upward contributors to change in the rate,” the ONS explained in the report.
“These were largely offset by a downward contribution from transport, particularly air fares and, to a lesser extent, motor fuels,” it added.
Following the report, GBP/USD traded at 1.2434 from around 1.2405 ahead of the release of the data, EUR/GBP was at 0.8526 from 0.8540 earlier and GBP/JPY changed hands at 137.61, compared to 137.26 previously.
Meanwhile, European stock markets traded mixed. London’s FTSE 100 gained 0.26%, the benchmark Euro Stoxx 50 lost 0.45%, France's CAC 40 fell 0.14%, while Germany's DAX traded down 0.21%.