Recent data from the Office for National Statistics (ONS) shows that United Kingdom house prices rose by 5.8 per cent in the year to February but prices in London are seeing the slowest increase in five years.
Evidence suggests that the impact of inflation is already starting to hurt British consumers, and the British Retail Consortium (BRC) on Tuesday announced that total sales fell 1% in March compared to the same month a year earlier.
The producer price index (PPI) rose 7.6 per cent year on year in March, according to the National Bureau of Statistics.
China's producer price index, which measures costs of goods at the factory gate, rose 7.6 percent year on year in March.
The CPI reading for March was the joint highest level since September 2013, keeping it above the Bank of England's 2% target for inflation.
He had added the official inflation target for 2017 is three per cent, after the CPI rose two per cent year-on-year in 2016.
"This could be partly due to the supermarket price wars in the United Kingdom over this period which resulted in a downward pressure on food prices".
United Kingdom inflation's huge surge since the Brexit referendum paused in March, remaining at the same level seen in February, according to the latest release from the Office for National Statistics on Tuesday. Overall, inflation was up by 13.0 percent on an annual basis, and increased by 1.2 per cent on a monthly basis. The U.K.'s economic growth relies heavily on domestic demand, which is likely to falter as Britons' wages struggle to keep up with price increases. The inflation rate is expected to average about 7 per cent at the end of the year.
In the month of February, CPI stood at 3.65% raising for the first time in seven months from 3.17% in January. "This reflects the depreciation of sterling feeding through into higher import costs, eg food and fuel". People's real incomes still haven't recovered from the financial crisis because of low wage growth and high living costs and those on low incomes are suffering the most.
It said unemployment had fallen to its lowest level in a decade - down 45,000 in the three months to February to 1.56 million - with the jobless rate remaining at 4.7% and a record number of job vacancies on offer. After Britain's economy withstood the initial shock of the Brexit vote past year, economists have reined in their forecasts for how much unemployment is likely to rise.