What's more, even if inflation starts to come down, which many predict it will in the second quarter of the year as energy prices start to fall in comparison with last year, the cost of living situation could persist for a while longer.
Heidi Karjalainen, a research economist at the Institute for Fiscal Studies, said: "Inflation in March remained high, but we expect to see a substantial fall in the rate of inflation next month as energy inflation will finally start to fall.
"This does not mean that the energy prices that consumers face are falling - just that they are rising less quickly. Households are only expected to start seeing lower gas and electricity prices from July this year.
"And even when energy prices start to fall, prices of other categories such a food are likely to continue rising so the squeeze on household finances is far from over."
Jonny Black, chief commercial and strategy officer at Abrdn, agreed: "Even if inflation is weakening, prices are still rising, just not as quickly.
"What the Bank of England is forecasting as 'significant' shifts in the CPI readings shouldn’t mean sizeable changes in clients’ strategies. The support of an adviser will be critical to keeping them firmly focused on their longer-term goals, and avoiding any steps that could prove damaging in the long-term."
carmen.reichman@ft.com
