$GBIRYY - U.K CPI (March/2025)

GBIRYY 2.6%
March/2025
source: Office for National Statistics


- The annual inflation rate in the UK slowed to 2.6% in March 2025 from 2.8% in February and below market and the BoE's forecasts of 2.7%.
The largest downward contributions came from recreation and culture (2.4% vs 3.4%), mainly games, toys and hobbies (-4.2%) and data processing equipment (-5.1%). Transport also contributed to the slowdown (1.2% vs 1.8%), largely due to a 5.3% fall in motor fuel prices.
In addition, prices rose less for restaurants and hotels (3%, the lowest since July 2021 vs 3.4%), mostly accommodation services (-0.6%); housing and utilities (1.8% vs 1.9%); and food and non-alcoholic beverages (3% vs 3.3%).
In contrast, the most significant upward contribution came from clothing and footwear (1.1% vs -0.6%), with prices usually rising in March as spring fashions continue to enter the shops.
Compared to the previous month, the CPI edged up 0.3%, slightly below both the previous month’s increase and expectations of 0.4%.
Annual core inflation slowed to 3.4% from 3.5%.