British inflation increases 2.3% in March

British inflation edged up in March when underlying consumer prices rose by 2.3 per cent year-on-year against a rate of 2.2 per cent in February.

The underlying inflation rate rose 0.4 per cent from February, pushing the annual rate up towards the government target of 2.5 per cent again after a moderation of price pressures in February.

The headline rate of inflation, which includes the volatile effects of home-loan repayments, rose 0.4 per cent month-on-month, leaving a 12-month rate of 1.3 per cent.

Analysts were predicting an annual headline rate of 1.1 per cent and an annual underlying rate of 2.3 per cent.

Inflation has slowed sharply in recent months in Britain, and in December it hit its lowest level since 1960.

AFP