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U.K. inflation remains at record-low 0.0% in March

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Investing.com -

Investing.com - Consumer price inflation in the U.K. held at the lowest level since records began in March, fuelling concerns over deflationary pressures, official data showed on Tuesday.

In a report, the U.K. Office for National Statistics said the rate of consumer price inflation held steady at a seasonally adjusted 0.0% last month, in line with expectations and unchanged from February.

Month-over-month, consumer price inflation increased 0.2% in March, meeting forecasts and after rising 0.3% in February.

Bank of England Governor Mark Carney will now have to write an open letter to the Chancellor of the Exchequer, George Osborne, as inflation is more than a percentage point below the central bank's target of 2.0%.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 1.0% last month, down from 1.2% in February and below forecasts for a reading of 1.2%.

The retail price index increased 0.9% in March, missing expectations for a gain of 1.0% and down from 1.0% in February.

The data also showed that the house prices index rose 7.2% in February, trailing forecasts for a gain of 8.7% and down from 8.4% in January.

GBP/USD was trading at 1.4626 from around 1.4658 ahead of the release of the data, while EUR/GBP was at 0.7216 from 0.7204 earlier.

Meanwhile, European stock markets remained mixed. London's FTSE 100 tacked on 0.2%, the EURO STOXX 50 shed 0.4%, France's CAC 40 dipped 0.15%, while Germany's DAX slumped 0.25%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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