Inflation in the United Kingdom (U.K.) remained above 10% in March as consumers continue to struggle with rising food and energy costs.
The Consumer Price Index (CPI) rose by an annualized 10.1% in March, according to the Office for National Statistics, which was above a consensus estimate of 9.8% among economists polled by the Reuters News Agency.
However, the March inflation rate was down slightly from a reading of 10.4% in February. The U.K. inflation rate peaked last October at a 41-year high of 11.1%.
On a monthly basis, inflation rose 0.8% in March, which was down from 1.1% in February.
Core inflation, which excludes volatile food, energy, alcohol and tobacco prices, rose by 5.7% in March from a year ago, which was unchanged from February.
The Office for National Statistics said the largest contributors to the March inflation rate were costs for electricity, gas and other fuels, as well as food and non-alcoholic beverages.
Food prices in the U.K. rose by 19.2% in March from a year earlier, the highest annual increase in more than 45 years.
The Bank of England raised interest rates by 25 basis points to 4.25% in February, and traders are expecting another quarter-point hike at the central bank’s next meeting on May 11.
