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UK inflation falls again ahead of key Bank of England interest rate decision – how it affects YOUR wallet

Published on April 16, 2025 at 06:01 AM

THE UK'S rate of inflation has fallen again in March.

The Officefor National Statistics (ONS) said the(CPI) measured 2.6% in the 12 months to March.

Ascending stacks of British one-pound coins.
The latest inflation figures have been published today

This is compared to a reading of 2.8% in February, a drop on January's figure of 3%.

is a measure of how much the prices of everyday goods such as food and clothes, and services such as train tickets and haircuts, have increased compared to a year earlier.

When inflation falls it means prices are going up at a slower pace than the month before.

The Bank of England has a target to keep inflation at 2%.

Meanwhile, inflation is expected to hit 3.7% in the, driven by increases in the price ofand food.

It comes just one day after the ONS published its latest labour market data, with wages remaining

The Bank of England will look at today's inflation data and wages when making a decision about whether to hold or cut interest rates.

Most are predicting that rates will be cut on May 8 down from its current figure of 4.5%.

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