Inflation has cooled to the lowest level in more than two years.
The Consumer Prices Index (CPI) rose by 3.2 per cent in the 12 months to March 2024, down from 3.4 per cent in February, figures published today show.
City economists had forecast a lower drop of 3.1 per cent.
Lily Megson, Policy Director at My Pension Expert, said, “This easing brings a glimmer of relief for consumers, marking a consecutive downturn from last month’s rate. But is it enough to restore savers’ confidence? That remains to be seen.
“While retirees may find some solace in the latest state pension rise courtesy of the triple lock, it’s important to recognise that this alone won’t begin to address all the UK’s pension challenges.
“There’s a pressing need for additional support for those nearing retirement, empowering them to safeguard their pensions against broader fluctuations in the economy.”
The drop was largely due to food prices slowing sharply, according to the Office for National Statistics (ONS).
GETTY
The fall in inflation was largely due to food prices slowing, according to the Office for National Statistics (ONS).
Although inflation has fallen, prices are still rising compared with last year – just at a slower rate.
It brings inflation further towards the UK’s two per cent target, and away from the 40-year peak seen in 2022.
Chancellor of the Exchequer, Jeremy Hunt said: “The plan is working: inflation is falling faster than expected, down from over 11 per cent to 3.2 per cent, 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.”
