The cost of living rose more than anticipated last month due to surging prices for bread, cereal and chocolate, according to reports.
While inflation fell from 10.4% in February to 10.1% in the year to March, it was widely expected to fall below 10%. However, food prices continued to increase with the fastest rise in 45 years.
Despite falling inflation, prices aren’t droppin,g but merely the rate of price rises is slowing. Although global food prices were decreasing, this had not yet translated into price cuts, said Grant Fitzner, chief economist for the Office for National Statistics.
He added, to BBC Radio 4’s Today Programme, that this maintained rate “is certainly within the realm of possibility but we don’t forecast this.”
However, Labour’s shadow chancellor Rachel Reeves said, “The reality is that under the Tories our economy is weaker, prices are out of control and never have people paid so much to get so little in return.”
In comparison to other Western countries such as the US, Germany, France and Italy, inflation in the UK remains higher due to factors such as the country’s exposure to rises in wholesale gas prices, its dependence on imports of specific foods, and worker shortages and wage increases.
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