UK Retail Inflation Report summary
March 2024
Period covered: Period covered: February 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Inflation
The headline CPI inflation rate rose by xx% YoY, down from xx% last month and below expectations of a xx% rise.
Goods and Services inflation ease: Inflation for goods slowed more than for services, highlighting the ongoing divergence in price pressures within the economy. Goods inflation slowed from xx% to xx% YoY while services inflation eased from xx% to xx%, slightly above of consensus but in line with the Bank of England’s estimate.
Core inflation dips: The core CPI, which excludes volatile items like energy, food, alcohol, and tobacco, eased 0.6 percentage points to xx% indicating underlying inflationary pressures are easing.
Food inflation falls further: Food and non-alcoholic beverages inflation rose by xx% YoY, down from xx% last month and its lowest level since xxxx xxxx. Downward pressure came from the bread and cereals category with other smaller downward effects coming from items such as xxxx xxxx.
Notably, food prices have been relatively stable since xxx xxx, rising less than xx% over the xx months from xxxx to xx. This compares with a rise of xxxx% seen over the previous xx months to xxxx.
Despite ongoing geopolitical risks, including those in the Red Sea region, inflationary pressures are expected to ease in the near term.
Food inflation is likely to slow further, supported by soft producer prices for food products. Additionally, anticipated reductions in household energy bills in March should contribute to headline inflation approaching its 2% target rate.
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Inflation rise below expectations
Source: ONS
