In March 2024, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) stayed steady at a 3.8% rise compared to February. The Consumer Prices Index (CPI) also showed a decrease, dropping from 3.4% to 3.2% in the 12 months leading up to March 2024. In UK Inflation every month, both CPIH and CPI increased by 0.6% in March 2024, slightly lower than the previous year.
The main factors contributing to these changes were fluctuations in food and motor fuel prices. Food prices rose less than they did a year ago, while motor fuel prices increased compared to the previous year. Core CPIH, excluding energy, food, alcohol, and tobacco, rose by 4.7%, slightly down from February’s 4.8%, with goods prices slowing down to 0.9% and services remaining unchanged at 6.0%.
Similarly, Core CPI showed a decrease from 4.5% to 4.2%, with goods prices slowing to 0.8% and services easing slightly to 6.0%. Despite a decrease in the overall UK Inflation rate, the cost of goods remained significantly higher than two years ago. Items like meat, crumpets, and chocolate biscuits experienced price drops, while furniture and household goods prices fell by 0.9% in the year leading up to March.
High inflation in the UK over recent years has been primarily driven by soaring food and energy costs. The pandemic and the Russia-Ukraine conflict exacerbated this situation, leading to increased demand for oil and gas and a reduction in grain supplies, further driving up food prices. Last year, inflation for food and non-alcoholic drinks reached nearly 20%, the highest level since the 1970s.
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