Rate of inflation falls as fuel prices drop

The rate of inflation stood at 2.6% in the 12 months to March – down from 2.8% in February.

The new figures, released this morning by the Office for National Statistics (ONS), show that the drop was mainly due to a fall in fuel prices, while food stayed at the same price.

ONS chief economist Grant Fitzner said: “Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year.

“The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February.

The new figures from the ONS are the second piece of good news for the Government in the last seven days, following the rise in GDP last week.