UK inflation falls to 2.6%, increasing pressure on Bank to cut interest rates
GuardianMAR 31
UK: Inflation Drops to 2.6% as Fuel Prices Fall
Above: Chancellor of the Exchequer Rachel Reeves arrives to host a press conference in the Downing Street Briefing Room in Downing Street, central London, on March 26, 2025. Image copyright: Ben Stansall/POOL/AFP via Getty Images
The Spin
Pro-government narrative
Inflation has now fallen for two consecutive months and sits below anticipated highs—a clear sign that the government’s plan is working. Prices are stabilizing across key sectors, easing pressure on households. While challenges remain in an unstable geopolitical environment, this marks real progress in restoring economic normality and protecting families from the worst of an ongoing cost of living crisis.
Opposition narrative
While inflation may have dipped, this offers little comfort to families already facing surging bills. April brought sharp hikes to energy, water, council tax, and broadband costs—changes not yet reflected in the data. Amid Trump's tariff hysteria, economists warn this is the calm before the storm, with inflation expected to rise again and household budgets expecting even further strain.