CPI inflation rises in five-month first
Published on 17 April 2012 11:30 AM
Families are under yet more pressure as the Consumer Price Index (CPI) rate of inflation rose in March.
Halting five months of decline, the CPI rose from 3.4% in February to 3.5% last month.
The figure, announced by the Office for National Statistics (ONS), flies in the face of Bank of England predictions that CPI would fall throughout this year back to the Government's 2% target.
The unexpected rise will heap more pressure on cash-strapped households, who are already struggling amid high prices and stagnant wage growth.
Food and non-alcoholic drinks fell 0.5% on the month but this compared with a 1.4% fall last year.
Meanwhile the average cost of petrol and diesel at the pump rose to £1.38 and £1.46 a litre respectively in March - a record high.
The rise in inflation may make the Bank of England less willing to inject more money into the economy through its quantitative easing (QE) programme.
Copyright Press Association 2012