“U.K. inflation was unchanged in March, extending its run above the Bank of England’s target and maintaining a squeeze on consumers.
Consumer prices rose 2.8 percent from a year earlier, the Office for National Statistics said in London today. That matched the median forecast of 36 economists in a Bloomberg News survey. In a separate release, the ONS said factory-gate prices rose 0.3 percent in March from February and were up 2 percent from a year earlier.
U.K. consumers are under pressure from rising prices and a fiscal tightening that’s deeper than that implemented byMargaret Thatcher during her premiership. While the government has broadened the BOE’s scope to add to stimulus even as inflation remains above its 2 percent goal, a majority of the Monetary Policy Committee voted to maintain the size of the bond-purchase plan this month.
“More inflation misery is coming for consumers,” said Rob Wood, chief U.K. economist at Berenberg Bank in London. The pace of inflation will probably accelerate further in the coming months, he said. “The BOE seems unlikely to engage in more asset purchases in the next month or two.”
The pound was little changed against the dollar after the data were published. It traded at $1.5289 as of 10:17 a.m. London time, from $1.5285 yesterday.
U.K. inflation has been above the BOE’s target every month since December 2009.
