Inflation falls as crumpet and meat prices drop

Price falls for some food items like meat, crumpets and chocolate biscuits helped drive inflation down to its lowest level in two and a half years.

The rate consumer prices have been rising at fell to 3.2% in the year to March, down from 3.4% the month before, according to official figures.

Inflation has been falling gradually since it peaked at 11.1% in late 2022.

However, lower inflation does not mean prices overall are coming down, they are just rising less quickly.

According to the Office for National Statistics (ONS), the price rises seen across most types of food products eased between February and March, with small increases being seen for bread and cereals.

Grant Fitzner, chief economist for the ONS, said that rising fuel prices off-set lower costs elsewhere.

While the overall rate of inflation in March was slightly higher than economists expected, Chancellor Jeremy Hunt described the figures as "welcome news".

He said that due to lower inflation and the government's recent cut in National Insurance for the employed and self-employed, which came into force on 6 April, "people should start to feel the difference as well as see it in their pay cheques".

However, Rachel Reeves, Labour's shadow chancellor said working people would still feel worse off.

"Prices are still high in the shops, monthly mortgage bills are going up and inflation is still higher than the Bank of England's target," she said.