Easing food prices counteract upwards contributions from fuel costs.
The rate of UK inflation eased to 3.2% in the year to March 2024, today’s release from the Office for National Statistics (ONS) found. While this is down from 3.4% the previous month, many expected a larger drop as the Bank of England seeks to meet its 2.0% target.
Nevertheless, this latest fall reflects a new two-and-a-half-year low; the last time inflation was slower was in September 2021 when the costs of goods and services rose at a rate of 3.1%.
Today’s figures also provide a welcome contrast to across the Atlantic, where US inflation unexpectedly increased to 3.5% within the same period.
