British 12-month inflation posted a surprise drop to 1.8% in March from 2% in February, official figures show today.
The annual inflation rate was the lowest since February 2005 and was below the Bank of England's 2%. Analysts' consensus forecast had been for an annual inflation rate of 2.1% in March.
The consumer price index climbed by 0.2% in March on a monthly basis, according to Britain's Office for National Statistics. The largest downward effect on the CPI annual rate came from food and non-alcoholic beverages, the ONS said. Another large downward contribution came from transport.
The ONS said that the largest upward contribution came from housing, water, electricity, gas and other fuels.
'Average gas and electricity bills increased by more than a year ago, reflecting tariff increases this month and the continuing impact of recent increases,' the ONS said.
