Inflation dips but food prices soar

RPI inflation came down a notch to 13.5% in March. This was less than predicted and many prices, including food at 19.2%, are still soaring . It is expected to fall later in the year (with forecasts predicting as low as 4.9% by May), although this does not mean that prices will come down. In contrast, wage growth improved slightly in January. Average weekly earnings (regular pay) rose to 6.9%, matching the recent high seen last November. In the private sector they grew by 7.3%, driven by finance and services, and in the public sector by 5.5%. Payline’s negotiated deals saw the median for pay rises for the lowest paid at 6.5% in March, with private sector settlements achieving 8%, but public sector agreements lagging behind on 4.6%.