RE: INFLATION DOWN! GROWTH UP!!!16 Apr 2025 11:12
“Inflation will gather pace in April as energy and water bill hikes push prices higher, an economist has warned.
Sanjay Raja of Deutsche Bank said policymakers could take solace in the lower than expected inflation for March, which came in at 2.6pc.
However, he said prices would rise again, even before any impact from US tariffs, although this would remain below the Bank’s second quarter forecast.
He said: “Inflation will take a big step up in April, pushing above 3.25pc as energy and water bills lead inflation higher.”
Mr Raja expects inflation to return to target by the middle of next year, as the Bank of England loosens the taps on the back of yesterday’s weak labour market data and today’s softer inflation score.
Inflation slowed to 2.6pc, according to the Office for National Statistics, down from 2.8pc in February and paving the way for interest rate cuts next month.
He said the index had been weighed down by weaker price rises for goods such as smart watches, communication equipment, musical instruments, pizza and quiches, as well as recreational services, accommodation prices and transport prices.“