UK inflation falls as price of petrol drops

The fall in gasoline prices caused the United Kingdom inflation in more than expected in the year until March.

Inflation was 2.6%, below a rate or 2.8% in February, according to official data.

But the fall can only be temporary, since analysts say that it is expected to increase since April as the ascending invoices and the highest commercial costs are strengthened.

“The only significant displacement came from the price of clothing that increased strongly this month,” said Grant Fitzner, chief economist of the National Statistics Office (USA).

The average price of gasoline fell by 1.6p per liter between February and March to 137.5p per liter.

The decrease in inflation was also driven by a drop in recreation and culture prices, with toys, games and hobbies that fell partly.

Autumn inflation means that, although prices continue to increase, the rhythm is slowing down. Price increases have slowed from the maximum seen in recent years.

Salaries continue to exceed inflation with salary increases for public sector workers who grow more than those in the private sector.

The average increase in wages was 5.9%, The data published by the ONS on Tuesday showed.

In May, April inflation figure will probably be taken to about 3% due to increases in gas prices, electricity prices and water charges, said Michael Saunders, main oxford economics advisor.

The former member of the Monetary Policy Committee of the Bank of Inmates said on the current Radio 4 program that the effect of Trump’s commercial wars will also be felt in exports and investments in the United Kingdom.

“We can obtain a diversion of cheap exports that would otherwise have gone to the United States, we will begin to come to Europe and the United Kingdom,” he said.

“Perhaps not as high as the Bank of England had been rubbed again a few months ago, but the economy will be weaker, with exports and investments and expenses of consumers, every impact and unemployed beginning to increase.”

He added that another side effect or Trump’s commercial war is affecting global growth, which makes oil prices fall, which will feed until the lowest gasoline prices here in the United Kingdom.

Sonja says that the highest cost for your business is the staff, and that is about to increase with minimal salary increases.

The recently increased in national insurance has cost more than £ 60,000.

“And it is becoming taller and higher,” he says, but is happy to pay, since he says he will help improve the United Kingdom infrastructure.

His firm, West Special Fastiers, produce nuts and bolts, and have been doing it since 1999.

The firm has about 65 employees and supplies defense companies on the high seas and specialized construction with non -standard fasteners, made with stainless steel and exotic metals.

“We are trying to be a bit more efficient, so we are trying to improve all our processes, because that can help recover part of that money.”

But, he adds, if he cannot absorb additional costs, the prices of their products will have to climb.

“So there is a specialized material that we call that is called Hasteloy C-276. Probable to say about five years ago, that one leg could have, say, £ 30 per kilo.

“Now we are looking around £ 50 per kilo. Therefore, as you can see, it is a massive and mass increase.”

As your company is a high -energy user, the increase in the cost of energy has also “really affected.”

In addition to that, she is that working in engineering, “you always have ups and downs, because it really depends on what is happening worldwide, and conflicts can have a blow effect on what we do.”

As inflation decreases, it could press to the Bank of England to reduce its key interest rate, currently 4.5%.

Vacancies at its lowest point in four years and the economic pressure predicted from Donald Trump’s tariffs can also encourage the bank to cut when it meets next month.

But the bank faces a dilemma, since salary growth is still strong and this would normally discourage a cut in rates.

Experts and analysts predict that inflation falls to about its objective of 2% by 2026.

The inflation of the fall will be good news for the government, said Lindsay James, Quilter investment strategist.

“With the weakening of the labor market weakening a little, and threats very real tariffs and still at stake, any descending pressure on inflation will be acclaimed,” he said.

Added the prognosis of inflation “remains very uncertain” due to a “volatile” global economy, and the increase in national insurance that said Will Increase April prices.

Foreign Minister Rachel Reeves said the fall was “encouraging” but that “there is more to do.

“I know that many families are still fighting with the cost of living and this is an anxious moment due to a changing world,” he said.

However, Foreign Minister Shadow, Mel Stride, says that “reckless unions, reeves tax increases, tax increases and loan binge are increasing the cost of living.”

He said inflation remains above the official or 2% objective due to their elections.