Martin Lewis has given his reaction to the inflation rate dropping to its lowest level in over two years.
The headline rate of inflation fell from 3.4 per cent in February to 3.2 per cent in March.
In a post on X Mr Lewis described this drop as “a big improvement from 10.1 percent a year ago.
Mr Lewis said: “To be clear though this doesn’t mean prices are lower.
“On average things still cost 3.2 percent more than a year ago, and something costing £100 two yrs ago now costs an avg £113.60
The news comes from the Office for National Statistics (ONS), whose chief economist Grant Fitzner said: “Inflation eased slightly in March to its lowest annual rate for two and a half years.
“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
“Similarly to last month, we saw a partial offset from rising fuel prices.”
The annual rate of increase in food prices came down from 5 percent to 4 percent. While some products, such as chocolate biscuits, are actually getting cheaper.
The ONS also pointed out that furniture and household goods, such as washing machines, are 0.9 percent cheaper than a year ago.
At the same time, the rate of increase of clothing and footwear eased from 5 percent to 3.9 percent.
Petrol and diesel prices rose in March, which partly offset better news on other goods and services.
Alice Haine, Personal Finance Analyst at Bestinvest by Evelyn Partners, said: “Core CPI inflation, which strips out more volatile items such as food, energy and tobacco, also eased to 4.2 percent in March, raising hopes that the Bank of England may make a move to cut interest rates sooner rather than later.”
But she said: “Easing inflation does not automatically guarantee an imminent interest rate cut.
“While the Bank of England acknowledges that interest rate cuts are the ‘direction of travel’, they say they require consistent evidence that inflationary pressures are in retreat before they can make a move.
“This means borrowing costs could remain higher for longer – not something households starting to get a grip on their finances after the protracted financial squeeze of the past couple of years may want to hear.”
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