The Office for National Statistics said consumer price inflation fell to an annual rate of 10.1%, down from 10.4% in February, but much higher than the 9.8% expected by economists polled by Reuters and the 9.2% expected. Bank of England in February.
Inflation, which hit a 41-year high of 11.1% in October, continued to erode the purchasing power of workers whose salaries are rising by a smaller percentage, Reuters reports.
Prices for food and non-alcoholic drinks were 19.1% higher in March than a year earlier – the largest increase since August 1977 – which the Office for National Statistics said reflected higher costs for biscuits and cakes and, to a lesser extent, chocolate and fruit. The cost of milk and sugar is 40% more than last year.
Britain’s headline inflation rate is now the highest in Western Europe and compares to an average of 6.9% in the Eurozone and 5.0% in the US. Austria recorded a higher inflation rate than Britain in February.
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