Inflation flat in March
INFLATION was unchanged in the year to March, latest figures have shown. Data from the Office for National Statistics shows falls in the price of clothing and gas prices produced the largest downward contributions on the rate.
These were offset by a rise in the price of motor fuels and smaller upward contributions from a variety of other products such as food.
This is the joint lowest 12-month rate on record alongside the rate in February 2015.
In the year to March 2015, food prices fell by 3.2% and prices of motor fuels fell by 13.7%. In both cases, the falls were smaller than in the year to February but the two groups still provided the largest downward contributions to the 12-month rate for March.
Clothing and footwear prices, overall, fell by 0.1% between February and March this year compared with a rise of 1.8% between the same two months a year ago.
This is the first time that prices have fallen between February and March since the CPI was introduced. Normally prices rise as they continue to recover following the January sales period. The downward contribution came from price movements for a range of womenswear, particularly trousers, dresses and cardigans. There was also a smaller downward effect from men’s outerwear
Housing and household services prices, overall, fell by 0.4% between February and March 2015 compared with a smaller fall of 0.1% between the same two months a year ago. The downward effect came from changes in gas prices, with average bills falling by more this year than a year ago.
Restaurants and hotels prices, overall, rose by 0.2%.
The largest upward contributions came from transport, where prices, overall, rose by 0.7% between February and March 2015 but were little changed between the same two months a year ago. The upward contribution came principally from motor fuels.
Average petrol prices rose by 3.8p per litre between February and March this year compared with no change between the same two months a year ago. Diesel prices also rose this year by 3.5p per litre but fell by 0.4p per litre a year ago.
Food and non-alcoholic beverages overall, fell by 0.2% between February and March, compared with a larger fall of 0.5% between the same period a year earlier.
Small upward effects came from four product groups: milk, cheese and eggs; vegetables; sugar, jam, syrups, chocolate and confectionery; and mineral waters, soft drinks and juices. These were partially offset by small downward contributions from meat and fruit.
