UK growth slows

  • GDP is estimated to have increased by 0.4% in Quarter 1 (Jan to Mar) 2016 compared with growth of 0.6% in Quarter 4 (Oct to Dec) 2015
  • Output increased in services by 0.6% in Quarter 1 (Jan to Mar) 2016. The other 3 main industrial groupings within the economy decreased, with production falling by 0.4%, construction output by 0.9% and agriculture by 0.1%
  • GDP was 2.1% higher in Quarter 1 (Jan to Mar) 2016 compared with the same quarter a year ago
  • In Quarter 1 (Jan to Mar) 2016, GDP was estimated to have been 7.3% higher than the pre-economic downturn peak of Quarter 1 (Jan to Mar) 2008. From the peak in Quarter 1 (Jan to Mar) 2008 to the trough in Quarter 2 (Apr to June) 2009, the economy shrank by 6.1%

UK inflation up to 0.5%

Consumer Price Inflation, Mar 2016: ONS

The Consumer Prices Index (CPI) rose by 0.5% in the year to March 2016, compared with a 0.3% rise in the year to February.

The rate has increased gradually since October 2015 although is still relatively low in the historical context.

Rises in air fares and clothing prices were the main contributors to the increase in the rate between February and March 2016.

These upward pressures were partially offset by a fall in food prices and a smaller rise in petrol prices than a year ago.