• Sun. Apr 21st, 2024

Inflation rates drop due to rising food and dining expenses

BySamantha Johnson

Mar 20, 2024
Inflation rates drop due to rising food and dining expenses

Inflation in the UK fell to 3.4% in February, down from 4% in January, bringing it closer to the Bank of England’s target of 2%. This marks the slowest pace of rising cost of living since September 2021 when it was at 3.1%. The decline in inflation is mainly attributed to a decrease in food prices, although prices are still rising, just at a slower rate compared to before.

The gradual fall in inflation comes after reaching a peak of 11.1% in October 2022, the highest rate in four decades. Economists had anticipated this drop, which is expected to strengthen the possibility of the Bank of England reducing interest rates later in the year. The Bank’s interest rate decision is set to be announced on Thursday, with most expecting rates to be kept at 5.25%. Despite the welcome decrease in inflation, the UK officially entered a recession at the end of last year, adding to the economic challenges faced by the country.

Grant Fitzner, chief economist at the Office for National Statistics, pointed out that the significant drop in last month’s inflation figure was mainly due to the decline in food price inflation which decreased from 6.9% to 5%. This marks 11 consecutive months of falling food prices, with prices remaining relatively stable over the past nine months. The fall in food prices was somewhat offset by increases in fuel prices and rising rental costs, although the overall trend continues to show reduced inflation.

Although energy prices were not factored into the calculations by the ONS, both the Bank of England and the Office for Budget Responsibility are anticipating further declines in inflation. This suggests that the overall trend of decreasing inflation is expected to continue, offering some relief amidst economic uncertainties in the UK.

By Samantha Johnson

As a content writer at newszkz.com, I delve into the realms of storytelling, blending words to paint vivid narratives that captivate and inform our readers. With a keen eye for detail and a passion for research, I craft compelling articles that resonate with our audience. My love for words drives me to explore diverse topics, ensuring that each piece I create not only educates but also entertains. Join me on this journey as we navigate the ever-evolving landscapes of news and knowledge together.

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