Britain’s inflation of consumer prices moved down to 2.5% last month, the least figure in a year, data by the Office for National Statistics shows.
The decline came following February’s level of 2.7% as women's apparel slowed its growth rate compared to the previous year. It may be a sign that the pressure on UK family budgets is softening thanks to hiking wages. The latest data reveals that in Britain wages grew 2.8% in February.
And though the inflation is down, experts predict that the BoE will lift interest rates in May. They are expected to go up from 0.5% to 0.75%. Laith Khalaf of Hargreaves Lansdown holds the view that though UK’s central bank will likely go on with hikes, the Monetary Policy Committee will probably act cautiously.
Wage rise is still strangely unimpressive taking into account the low of unemployment, but the direction it is moving is correct, and the latest political attention to public sector wages implies it further gains traction.
The most influence on slowing inflation had apparel, particularly women’s clothing, and footwear, the Office for National Statistics’ data demonstrates.
Between February and March of this year prices added 0.7%, whereas in the same period of 2017 they rose 2%.