UK inflation falls to 4.6% after 45-year high in March 2023

<img width="250" height="151" src="https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-250×151.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-250×151.jpg 250w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-700×422.jpg 700w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-768×463.jpg 768w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-120×72.jpg 120w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-245×148.jpg 245w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04-500×301.jpg 500w, https://www.leaprate.com/wp-content/uploads/2022/05/UK-Big-Ben-04.jpg 880w" sizes="(max-width: 250px) 100vw, 250px" /><p>Bestinvest’s finance analyst, Alice Haine, noted:</p>
<blockquote><p>Softening inflation is positive news for households as it means incomes might be less stretched than they have been, but a decline in the headline rate does not mean prices are reducing, just that they are rising less quickly compared to previous months.</p></blockquote>
<p>The figures were reduced after the price cap issued by energy regulator Ofgem came into effect, limiting domestic energy bills to an average of £1,834. The annual inflation rate for food and non-alcoholic beverages dropped to 10.1% in October 2023, down from 12.2% in September; however, this is not predicted to reach single figures until mid-2024.</p>
<p>Despite the bleak outlook, this is a major improvement following the 45-year peak in March 2023, where the food and non-alcoholic beverages inflation rate hit 19.2%.</p>
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<p>On the other hand, Conservative Prime Minister Rishi Sunak promised the British public that his government would cut overall inflation by 5.4% by the end of 2023, which now appears to have been a reasonable pledge. Sunak began the year in the face of a 10.7% inflation rate lingering from October to December 2022.</p>
<p>Sunak stated:</p>
<blockquote><p>In January, I made halving inflation this year my top priority. I did that because it is, without a doubt, the best way to ease the cost of living and give families financial security.</p></blockquote>
<p>BoE governor, Andrew Bailey, noted:</p>
<blockquote><p>[It is] much too early to be thinking about rate cuts. […] We&#8217;ll be watching closely to see if further rate increases are needed.</p></blockquote>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/uk-inflation-falls-to-10-4-after-45-year-high-in-march-2023/">UK inflation falls to 4.6% after 45-year high in March 2023</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>