The UK consumer price inflation rate was a touch loftier than expected last month, numbers on Wednesday showed, though it cooled to its tamest level since September 2021.

According to the Office for National Statistics, the year-on-year rate of consumer price inflation ebbed to 3.2% in March, from 3.4% in February.

A slowdown to 3.1% was expected, according to FXStreet cited consensus, however. Nonetheless, it was still the tamest rate of inflation since it sat at 3.1% in September 2021.

The ONS said food price growth slowed in March, key to the rate of inflation easing.

‘Prices for food and non-alcoholic beverages rose by 4.0% in the year to March 2024, down from 5.0% to February. The March figure is the lowest annual rate since November 2021,’ the ONS said.

Consumer prices rose 0.6% in March from February. They had risen at the same pace in February from January. Prices had fallen 0.6% in January.

The annual core rate of inflation, so excluding energy, food, alcohol and tobacco, faded to 4.2% in March from 4.5% in February. An ease to 4.1% was expected, however, according to FXStreet.

The slowdown in March takes the annual rate of consumer price inflation closer to the Bank of England’s 2% target. The next BoE interest rate decision is on May 9.

Producer prices declined at a faster pace year-on-year last month.

Producer input prices fell 2.5% in the year to March, following a revised 2.2% fall in February. On a monthly basis, they declined 0.1% in March, after rising 0.3% in February from January.

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