UK inflation dropped to a fresh two-and-a-half year low in March on the back of a further easing in food prices, official figures have shown. The Office for National Statistics said Consumer Prices Index inflation stood at 3.2 per cent in March, down from 3.4 per cent in February.
The largest upwards pressure came from motor fuels, after the average price of petrol rose by 2.6p per litre between February and March 2024 to stand at 144.8 pence per litre, according to the ONS. This has also increased speculation that the central bank could cut interest rates in the coming months, although Governor Andrew Bailey and other members of the Bank’s monetary policy committee have so far suggested it is too early for a cut.
Does this mean the cost of living is falling? Not yet. Falling inflation does not mean prices are dropping, just that the pace of increases is slowing. Latest Personal Finance News What is still getting more expensive? Fuel is broadly cheaper than a year ago but has ticked higher in recent months, with the price of petrol up 2.6p per litre between February and March 2024 to stand at 144.8p per litre.