UK inflation rate remains at 2.3%

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The UK inflation rate remained at 2.3percent in March, the highest level since September 2013, official figures show.

The rate was unchanged from February, but much higher from January’s rate of 1.8 percent, partly thanks to the fall in the pound after the Brexit vote, which has raised import prices.

The Office for National Statistics (ONS) said the figure would have been higher but for a fall in air fares.

These were lower this March thanks to the timing of Easter.

Last March, airfares rose by 20 percent as travel costs rose amid higher demand at Easter. Because Easter falls in April this year, economists are expecting to see that add to pressure on inflation.

The ONS also said that a recent fall in fuel prices had helped to keep prices from rising further.

Food prices in March were 1.2 percent higher than last year, the biggest annual rise in three years.

A survey by KPMG earlier on Monday suggested consumers were reining back spending in the face of rising prices.

 

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