In February, UK inflation witnessed a fall from 1.7% to 1.5% in March. The ONS states that owner occupiers housing costs projects a fall by 0.2% in just a month. CPIH 12-month largest funds were contributed from electricity, water, gas, and other fuels.
Such constant falls in the price of motor fuels and clothing showcases in the largest downward contributions to the change between February and March. Due to the increase in air fares produced the largest , upward contribution, and partially offsetting to bring major change.
Rachel Winter, associate investment director at Killik & Co. believes that due to the COVID-19 lockdown they have used their normal goods and services beyond recognition. These latest figures, which only take eight days to calm the pressure on prices as demand has fallen away. While oil prices have been reflecting in the February inflation figure we will see the effect in the current month further weakness at the next reading.
She explained along with a few figures for the basket of goods which measured for the inflation. Transport registers 12.1% of the basket, and restaurants marks 9.6%. Most of them are spending zero on these two categories as they are staying at home due to the COVID-19 pandemic.
These are the new super products including cleaning, health, food, and pet care products to project steady demand for the next few months and have already been raised about price hikes in the categories. This might turn into a pressure for households with concern over job wage growth and stability. The inflation will completely depend on the global economy changes amid the COVID-19 crisis.