UK inflation falls to lowest level since September 2021

17 Apr 2024

The UK's annual inflation rate fell in March for a second consecutive month, dropping to 3.2%, according to the latest figures from the Office for National Statistics (ONS).

It is the lowest rate since September 2021 and eases the pressure on households amid the cost-of-living crisis.

Data from the ONS showed inflation continued to fall from 3.4% in February, as food prices rose at a slower pace than a year earlier. City economists and the Bank of England had forecast a slightly larger decline to 3.1%.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'Today's figures confirm inflation is continuing to slowly head in the right direction. That's good news for both consumers and businesses.

'However, a lot of uncertainty remains among the firms we speak to. Our most recent Quarterly Economic Survey showed almost half of firms in fact expect their prices to rise over the next three months. Labour costs are cited as the main driver, but increasing political and global uncertainty is becoming a key factor.

'Business conditions more generally remain challenging, and firms need to see a clear long-term vision for the UK economy from politicians.'