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On a monthly basis, CPI rose by 0.3 per cent in March compared with a rise of 0.6 per cent in March 2024.
Clothing had an upward contribution to the monthly change in CPI, an ONS release said.
Core CPI (excluding energy, food, alcohol and tobacco) rose by 3.4 per cent in the 12 months to March, down slightly from 3.5 per cent in the 12 months to February. The CPI goods annual rate eased from 0.8 per cent to 0.6 per cent.
“March inflation coming in broadly in line with Bank of England expectations is welcome news, particularly ahead of a likely pick up in price pressures in April due to higher energy costs, regulated price increases, and the passthrough of Autumn Budget measures,” said Martin Sartorius, principal economist at the Confederation of British Industry (CBI).
“Today’s data suggests that the Bank of England’s Monetary Policy Committee will likely cut rates next month. Looking ahead, we expect them to continue their ‘gradual and careful’ approach to reducing borrowing costs amid an uncertain economic environment,” he added in a statement.
Fibre2Fashion News Desk (DS)