skip to main content

UK inflation rate lowest since 2002

UK inflation - Transport costs lower
UK inflation - Transport costs lower

The annual rate of British inflation fell unexpectedly in March due to lower transport costs and a smaller rise in fuel prices than in the same period last year.

The Office for National Statistics said the Consumer Prices Index rose by 0.4% compared with March, giving an annual rate of 1.1%. This is down from the 1.3% annual rate in February and is the lowest rate since September 2002.

Inflation is now well below the Bank of England's 2% target, though most economists still expect the bank to increase UK interest rates next month.