STV NewsUK 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 (ONS) said that Consumer Prices Index inflation stood at 3.2% in March, down from 3.4% in February.
It marks the lowest level since September 2021, but was nonetheless slightly higher than economists expected.
Economists had predicted a reading of 3.1% for the month.
ONS chief economist Grant Fitzner said: “Inflation eased slightly in March to its lowest annual rate for two and a half years.
“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
“Similarly to last month, we saw a partial offset from rising fuel prices.”
Jeremy Hunt, the Chancellor, said: “The plan is working: inflation is falling faster than expected, down from over 11% to 3.2%, the lowest level in nearly two-and-a-half years, helping people’s money go further.
“This welcome news comes on top of our cuts to national insurance, which save the average worker £900-a-year, so people should start to feel the difference as well as see it in their pay cheques.”
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