海角视频 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 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.
Prime Minister Rishi Sunak said the figures show 鈥渢hat after a tough couple of years, our economic plan is working鈥.
However, financial markets pushed back expectations for interest rate cuts after the figures amid concerns over persistence in services and wage inflation.
Economists had predicted a reading of 3.1% for the month.
The drop was heavily linked to a slowdown in food price inflation, which was also its lowest for more than two years.
ONS chief economist Grant Fitzner said: 鈥淚nflation eased slightly in March to its lowest annual rate for two-and-a-half years.
鈥淥nce again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
鈥淪imilarly to last month, we saw a partial offset from rising fuel prices.鈥
Inflation for food and non-alcoholic drinks dipped to 4% for the month, from 5% in February, to reach its lowest level since November 2021.
The increased slowdown was partly driven by a fall in meat prices and lower rises for bread and cereals, the ONS said.
Furniture and household goods prices also contributed to the fall, with prices in the sector down 0.9% in March compared with the same month last year.
Elsewhere in retail, clothing and footwear inflation also slowed to 4% for the month, from 5% in February, after women鈥檚 clothing stores increased prices by less than normal for this time of year.
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.
The overall reduction in inflation comes after rate setters at the Bank of England hiked interest rates to a 15-year-high of 5.25% in order to put pressure on demand.
Economists expect inflation for April to show a further fall in inflation, supported by another drop in energy prices, as CPI moves closer towards the central Bank鈥檚 2% target rate.
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鈥檚 monetary policy committee have so far suggested it is too early for a cut.
Ian Stewart, chief economist at Deloitte, said: 鈥淚nflation is in retreat but the Bank of England cannot yet be sure that it is beaten.
鈥淗eadline inflation is likely to drop below 2% in the coming months, but to be confident it will stay there wage pressures need to ease.
鈥淲ith earnings growing at close to 6%, and the economy reviving, the Bank will be in no hurry to cut interest rates.鈥
On Tuesday, official figures showed regular wages growth, excluding bonuses, at 6% in the three months to February, which was a slight fall but also above economist predictions.
On Wednesday, Mr Sunak told broadcasters: 鈥淭oday鈥檚 figures show that after a tough couple of years, our economic plan is working and inflation continues to fall.
鈥淲e have also seen energy bills falling, mortgage rates falling and, just this week, data showed people鈥檚 wages have been rising faster than inflation for 12 months in a row.
鈥淢y simple message would be: if we stick to the plan, we can ensure that everyone has a brighter future.鈥
Chancellor Jeremy Hunt said: 鈥淭he 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鈥檚 money go further.鈥
Rachel Reeves, Labour鈥檚 shadow chancellor, said: 鈥淐onservative ministers will be hitting the airwaves today to tell the British people that they have never had it so good.
鈥淧rices are still high in the shops, monthly mortgage bills are going up and inflation is still higher than the Bank of England鈥檚 target.鈥
