UK inflation fell to its lowest level since September 2021 in March, according to the latest ONS figures.
The 3.2% rate was slightly higher than the 3.1% economists had forecast.
Food prices were the main reason for the fall, with prices rising by less than they did in March 2023. The fall in the rate was partially offset by rising fuel prices.
Food inflation was down one percentage point from the previous month to 4% – its lowest level since November 2021.
The decrease was partially due to a drop in the price of meat. The cost of chocolate biscuits and crumpets was also down, while the price of bread and cereals saw lower increases.
The headline rate of inflation looks set to dip below the Bank of England’s 2% target in April when lower energy bills following Ofgem’s reduction of the energy price are factored in.
However, with wages currently rising at 6%, it is unlikely that the bank’s Monetary Policy Committee will be rushing to cut interest rates in the immediate future.
