UK records western Europe’s highest inflation as March fall disappoints

Britain was the only country in Western Europe to see double-digit inflation in March after it fell less than expected, official data showed on Wednesday, boosting bets that the Bank of England will raise interest rates again as soon as possible.

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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