UK economy shrank in March amid rising prices

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UK economy shrank in March amid rising prices
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The UK economy shrank in March as households began to feel the impact of rising prices.

The economy contracted by 0.1% in March after no growth in February, the Office for National Statistics said.

In the first three months of the year the economy grew by 0.8%, which was driven by hospitality and travel industries recovering from coronavirus pandemic restrictions.Prices are rising at their fastest rate for 30 years, driven by soaring fuel, food and energy costs. The Bank of England has forecast that inflation - the rate at which prices rise - could reach more than 10% by the end of the year.

The ONS said a 15.1% fall in repairs of motor vehicles and motorcycles was the main factor behind the UK's services sector shrinking in March. However, it said the construction industry saw a strong month due to repairs needing to be carried out on homes and buildings following storms across in the UK in February.

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