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UK reaches the final leg of inflation fight following March decline, ICAEW says

Author: ICAEW

Published: 17 Apr 2024

Suren Thiru, Economics Director at ICAEW, responded to the UK inflation figures for March 2024, released by the Office for National Statistics today (Wednesday 17 April 2024):

“This latest drop confirms that the UK has reached the final leg of its inflation fight. 

“A landmark decline in inflation is locked-in for April, as lower energy bills following the reduction in Ofgem’s energy price cap, will have almost certainly pulled the headline rate below the Bank of England’s 2% target.

“Easing services and core inflation suggests a softening of underlying price pressures. While the National Living Wage increase is an upside risk, the squeeze from a cooling jobs market should help keep them on a downward trajectory.

“Though this inflation fall won’t be sufficient to drive a cut in interest rates next month, this outturn may persuade more rate setters to vote to loosen policy, providing a clear signal that rate cuts are on the horizon.” 


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841