David Scott’s - Market Watch

During the week I became increasingly frustrated by multiple news agencies, headlining that UK inflation had fallen last month. What they should have reported is that the rate that inflation is going up, slowed to 4 per cent in the 12 months to March, as heavy discounting in supermarkets offset household’s high utility bills, but it did not fall!

The Consumer Price Index rose 4 per cent in the 12 months to March compared with 4.4 per cent in the year to February, slightly lower than market expectations, with the RPI measure falling to 5.3 per cent from 5.5 per cent. The main reason for this was that food prices declined by 1.4 per cent between February and March, the biggest monthly fall since between June and July 2007.

Core CPI which excludes food, was only 0.1 per cent off consensus expectations at 3.2 per cent year on year, in the previous month, core CPI had been 3.4 per cent.

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Mike Raybone
Chartered Marketer and emarketing specialist

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