UK inflation falls to 2.6%, increasing pressure on Bank to cut interest rates
GuardianMAR 31
UK Inflation Increases to 3.5% Amid Rising Bills
Above: Gas burns on a domestic cooking hob inside a residential apartment in London, UK, on Feb. 28, 2024. Image copyright: Hollie Adams/Bloomberg via Getty Images
The Spin
Pro-establishment narrative
While inflation has risen, this increase was expected due to earlier energy price spikes feeding through the system. The broader trend still points to a future of falling inflation, with energy prices now lower and wage growth set to ease. The government is acting responsibly by providing support such as wage rises and fuel duty freezes while keeping long-term stability in focus.
Opposition narrative
The rise in inflation is a blow to struggling households. Much of this spike is linked to policies introduced by Chancellor Rachel Reeves, who hiked employer National Insurance and the minimum wage in one go, thereby driving up business costs which were passed on to consumers. In combination with rising bills and a shaky growth outlook, her economic strategy is to blame for deepening a cost-of-living crisis.