UK inflation eased in March but not by as much as City commentators had hoped and remains stubbornly in double digits, official figures stated.
The Consumer Prices Index (CPI) rose by 10.1% in the 12 months to March 2023, down from 10.4% in February, according to the Office for National Statistics.
On a monthly basis, CPI rose by 0.8% in March 2023, compared with a rise of 1.1% in March 2022.
Inflation including owner occupiers’ housing costs (CPIH) rose by 8.9% in the 12 months to March, down from 9.2% in February.
On a monthly basis, CPIH rose by 0.7% in March 2023, compared with a rise of 0.9% in March 2022.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The heat has been turned down on the bubbling cauldron of prices, but inflation is still scalding and interest rates look set to be pushed up again to try and cool it down rapidly."
"Instead of retreating below double digits, CPI is staying stubbornly high, causing more pain for companies and consumers."
The fall in prices mainly reflected changes in the transport division, particularly for motor fuels.
But food prices continue to exert upward pressure on the overall figure. Food and non-alcoholic beverages prices rose by 19.2% in the year to March, up from 18.2% in February.
There were also downward effects from housing and household services, furniture and household goods, clothing and footwear, and restaurants and hotels.
These were partially offset by upward effects coming from food and non-alcoholic beverages, and recreation and culture.
