UK inflation rate drops to 10.1% after shock rise – what it means for your money

THE UK’s rate of inflation fell to 10.1% in March, the latest official figures show.

It comes after it rose unexpectedly in February to 10.4% after falling for three months in a row.

GettyThe UK’s rate of inflation fell to 10.1% in March[/caption]

Inflation is a measure of how the price of goods and services have changed over the past year.

It has eased slightly since the eye-watering 11.1% seen in October, but is still close to a 40-year high.

Prices are still rising, but at a slower rate than last month.

What does it mean for my money?

Falling inflation indicates that the cost of goods and services are still rising but at a slower rate.

But prices are still higher than they were.

Alastair Douglas, cheif executive of TotallyMoney said: “Inflation remains at sky-high levels, and is still a long way off the Bank of England’s 2% target.

“Meanwhile, people’s finances are being pushed to the brink, resulting in an increase in defaults on credit cards, loans and mortgages — a trend which is expected to continue over the next three months.”

Food and drink prices rose by 16.9% in the 12 months to December 2022, up from 16.5% in November.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

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