The rising cost of living appears to have continued to pressure the UK economy to record slower growth in March after seeing consumers cut spending.
According to a report released by the Office for National Statistics (ONS), Gross Domestic Product (GDP) contracted 0.1% from estimates for unchanged and expansion in February 0.1%.
This also means that the economy grew only 0.8% in the first quarter, less than the 1% forecast by the market and also down from 1.3% previously recorded.
While quarterly growth shows GDP is above its para-pandemic levels, but following the worst inflationary pressures since 1980, the economy is expected to lose momentum rapidly and possibly slump into recession.
In March alone, the services and manufacturing sectors both saw a decline in production of 0.2%.
The Bank of England (BOE) last week predicted inflation would exceed 10% in October, which is five times higher than its target of 2% and policymakers are now working to control price increases with monetary tightening.
However, this has posed a major threat to UK growth in the future, with the BOE projecting the economy to be virtually stagnant over 2023 and 2024.
Following the publication, the pound depreciated to its most recent two -year low against the stronger US dollar.
