Inflation remains steady at 1.9% - ONS

The Consumer Prices Index rate of inflation remained at 1.9 per cent in March, unchanged from February 2019, the Office for National Statistics has revealed.

Aegon pensions director, Steven Cameron, said the figures may come as a surprise to those that forecasted inflation would consider its upward trend, with it instead remaining just below the Bank of England’s 2 per cent target.

“Yesterday’s wage growth figure shows the UK’s labour market is in a strong position with total pay increasing by 1.5 per cent above inflation for the three months to February. Rising real wage growth alongside today’s inflation figure means households will maintain their purchasing power,” he noted.

He added that for those in workplace pension schemes, it will also help to mitigate against some of the costs involved from the rise in minimum contribution levels for auto-enrolment which came into effect at the beginning of the month.

“Amongst the current Brexit impasse we are still no clearer on what inflationary pressures the UK’s withdrawal from the EU will bring. Where they can, individuals should look to save more to help weather any long-term squeezes on income that may be ahead.”

In addition, the Consumer Prices Index including owner occupiers’ housing costs remained unchanged at 1.8 per cent in March. The ONS said rising prices for motor fuels and clothing produced the largest upward contributions to change in the rate between February and March 2019. The largest, offsetting, downward contributions came from across a range of recreational and cultural goods, food and motor vehicles.

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