Even though inflation is above the Bank of England's target, analysts are not expecting the central bank to move quickly and raise rates due to the uncertainty surrounding Brexit negotiations.
China's producer prices rose for the seventh straight month in March from a year earlier. 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.
The urban CFPI in the month of March was 2.27% as compared to 1.87% in February and 3.98% during the same period a year ago. The cost of flying soars around the Easter holiday period.
"The CPI also will be boosted over the next two months by further utility price rises".
The factory output, as per the Index of Industrial Production (IIP), decelerated by (-) 1.2 per cent during February from a rise of 3.2 per cent reported for January 2017.
Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said: "March's CPI inflation rate comfortably exceeds the 2.1% anticipated by the MPC in February's Inflation Report, largely due to higher core goods prices".
That's because the ONS confirmed yesterday that inflation last month was running at 2.3 per cent. Prices for local goods went up by 7.3 per cent, while imported commodities rose 9.1 per cent and those of fresh products increased by 17.3 percent during the period under review.
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The rate of increase in factory gate prices on the other hand slipped from a 7.8% clip for February to 7.6% last month, although economists had expected them to slow further, to a 7.5% pace.
CPIH is the ONS's preferred measure of inflation, which includes costs associated with living in, maintaining and owning a home.
China's consumer inflation grew mildly in March, as stable prices reinforced the view that the world's second largest economy is firming up. The euro also lost ground against the pound, dropping to around 0.8485 pounds, while against the yen, the data helped lift sterling from 3-month lows to around 137.00 yen in European trading.
It means that in real terms - taking into account inflation - wages are being squeezed at the fastest rate in three years.
Unemployment has fallen to its lowest in a decade as a record number of job vacancies are on offer, new figures show.
Still-modest consumer inflation and moderating producer prices will give policymakers at the People's Bank of China (PBoC) room to continue with their campaign to reduce risks in the financial system after years of debt-fueled stimulus.