Inflation slows further to 2.6% after drop in petrol prices

UK inflation slowed down for the second month in a row in March on the back of falling petrol prices, according to official figures.

The Office for National Statistics (ONS) said the rate of Consumer Prices Index (CPI) inflation eased to 2.6% for the month, from 2.8% in February.

It was a steeper drop than predicted by economists, who had expected a reading of 2.7% for March.

It marks the lowest reading since December.

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Rise

ONS chief economist Grant Fitzner said: “Inflation eased again in March, driven by a variety of factors including falling fuel prices and unchanged food costs compared with the price rises we saw this time last year.

“The only significant offset came from the price of clothes, which rose strongly this month, following the unusual decrease in February.”

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