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Inflation slowed to 3.2% in March, down from 3.4% the prior month, as inflation fell to its lowest annual rate since September 2021.
According to the Office for National Statistics, food prices were the main reason for the fall, with prices across most categories rising by less against last year. However, the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but falling a year ago.
Prices for food and non-alcoholic beverages rose by 4.0% in the year to March 2024, down from 5.0% in February, with the March figure marking the lowest annual rate since November 2021. The rate has eased for the 12th consecutive month from a recent high of 19.2% in March 2023, the highest annual rate seen for over 45 years.
It comes as the annual rates for most types of food product eased between February and March 2024, with the largest effects coming from bread and cereals, and meat. Prices for bread and cereals rose by 0.2% last month, for example, compared with a rise of 2.2% a year ago, while meat prices fell by 0.5%, compared with a previous rise of 1.4%.
Overall, the annual rate eased in eight of the 11 food and non-alcoholic beverages classes, the exceptions being vegetables, hot beverages, and soft drinks.
Elsewhere, the prices of furniture and household goods fell by 0.9% in the year to March 2024, compared with a small rise of 0.1% to February, marking the largest annual fall in prices since September 2016 and the first negative rate since December 2020.
In addition, the prices of clothing and footwear rose by 3.9% in the year to March 2024, down from 5.0% the previous month, as March witnessed the lowest rate since November 2021.
Commenting on March’s inflation figures, 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.”
