The UK economy contracted by 0.1 percent in March, as surging inflation took a toll on demand to offset the boost that had been expected after the lifting of COVID-19 restrictions, according to the Office for National Statistics (ONS).
In February there was no change but in January there was 0.7 percent growth recorded.
"The UK economy recovered quickly from the worst of the pandemic and our growth in the first few months of the year was strong - faster than the US, Germany and Italy. But I know these are still anxious times,” UK Chancellor of the Exchequer, Rishi Sunak, said.
In turn, GDP grew by 0.8 percent in the first quarter of this year but on a monthly basis, March showed a 0.1 percent contraction.
On 5 May, the Bank of England increased its key rate from 0.75 percent to 1 percent, the highest rate for 13 years.
The bank also decided to maintain the stock of UK government bond purchases, financed by the issue of central bank reserves, at £875Bln.
The United Kingdom's inflation in 2022 is expected to rise to 10.25 percent, almost twice the previously projected 5.75 percent, according to the regulator.
The United Kingdom's inflation in 2022 is expected to rise to 10.25 percent, almost twice the previously projected 5.75 percent, according to the regulator.