India's Inflation Rises Less Than Forecast In March

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As neither energy prices nor sterling moved significantly during the month, current inflation levels remain their highest since September 2013.

This is expected to reach 2.75 per cent by the first half of 2018 by the Bank of England as the full impact of the pound's depreciation feeds through, although some analysts expect it to breach 3 per cent later this year.

China's producer price index, which measures costs of goods at the factory gate, rose 7.6 percent year on year in March. British consumers have been the main driver of growth for the United Kingdom economy in recent years and a fall in spending levels could cause a major slowdown in GDP growth at a time when inflation is accelerating, giving the Bank of England limited scope to act.

As well as pushing down fuel prices for drivers moderately in March, a fall in global oil prices helped to take some of the steam out of cost growth faced by factories, the ONS data showed. The cost of flying soars around the Easter holiday period. China cut gasoline and diesel retail prices late last month by the most so far this year.

The slowing pace of remonetisation, or pumping new Rs 500 and Rs 2,000 notes into circulation, during March to replace the scrapped Rs 500 and Rs 1,000 notes in November, helped inflation to stay within 4% in the financial year ending March 2017.

Food prices rose 1.93 percent on the year, slower than a 2.01 percent annual increase a month earlier.

The costs of food and beverages increased year-on-year in March by 43 percent, making them the largest contributers to rising inflation.

"Today's release confirms our expectations that 2017 will see the end of the consumer spending boom which has driven economic growth in recent years", she said.

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"This could be partly due to the supermarket price wars in the United Kingdom over this period which resulted in a downward pressure on food prices".

"Food, drink and clothing prices all rose in March".

China's consumer price inflation edged up to 0.9 percent year-on-year, slightly softer than expected and compared with 0.8 percent in February.

Tobacco, an item which consumers are prepared to pay high prices for to fuel their addictions, will also be shielded from inflation.

"For now the doves hold sway on the Bank's rate-setting committee, but with each month that inflation remains above target that stance will look less tenable".

Since the Brexit vote, inflation has jumped, thanks largely to the fall in the value of the pound since the vote.

The total of people out of work in the United Kingdom has fallen to its lowest since 2006 with the employment rate equalling its highest figure since records began 46 years ago.

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