DRIVERS have been handed a huge boost as a drop in fuel prices has kept inflation down.
The UK’s rate of inflation fell again in March, which the Office for National Statistics (ONS) revealing the Consumer Price Index (CPI) measured 2.6%.
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The prior month’s inflation hit 2.8% and in January, it sat at 3%.
And, March’s figure is below economists’ expectations and should bring fresh hope about an interest rate cut next month.
Officials said the statistics have seen a drop in fuel prices, while food prices remained the same.
Meanwhile, RAC experts have revealed the cheapest places to fill up your tank.
The have taken into account the latest supermarket data from Asda, Morrisons, Sainsbury’s and Tesco.
Asda came in the cheapest, with the average petrol price at 131.0p and lowest figures sat at 125.7p at select garages.
Morrisons came in close second with an average of 132.3p, while some forecourts offered as low as 127.9p.
Meanwhile, motorists can expect an average of 131.9p at Sainsbury’s across the UK.
Road users can fill up for just 125.9p at select stations.
Elsewhere, Tesco was ranked the most expensive, with an average of 132.8p – but the cheapest prices matches Sainsbury’s at 125.9p.
For diesel users, figures showed the supermarkets rank in the same order with Asda offering the lowest costs at 137.6p on average.
Tesco was again the most expensive, with an average of 138.2p.
But drivers may choose to use other non-supermarket brands.
Data from other popular names including Essar, Texaco, Esso, BP and Shell were also compared.
Experts ranked Essar the cheapest with an average of 128.9p, while Texaco came in higher at 135.0p.
Esso was even more expensive at 136.1p, alongside BP and Shell who offered 137.2p and 138.3p respectively.
Diesel users can expect the cheapest prices at Essar, with a 135.9p average.
At the other end of the spectrum was Shell, who are offering an average of 145.4p.
More information can be found on the RAC fuel advice website.
Inflation is a measure of how much the prices of everyday goods such as food and clothes, and services such as train tickets and haircuts, have increased compared to a year earlier.
When inflation falls it means prices are going up at a slower pace than the month before.
The Bank of England has a target to keep inflation at 2%.
Meanwhile, inflation is expected to hit 3.7% in the summer, driven by increases in the price of energy and food.
Chancellor of the Exchequer, Rachel Reeves, said inflation falling for two months in a row and wages growing faster was “positive” but there was “more to be done”.
“I know many families are still struggling with the cost of living and this is an anxious time because of a changing world. “
She added: “That is why the Government has boosted pay for three million people by increasing the minimum wage, frozen fuel duty and begun rolling out free breakfast clubs in primary schools.”
Why does inflation matter?
INFLATION is a measure of the cost of living. It looks at how much the price of goods, such as food or televisions, and services, such as haircuts or train tickets, has changed over time.
Usually people measure inflation by comparing the cost of things today with how much they cost a year ago. The average increase in prices is known as the inflation rate.
The government sets an inflation target of 2%.
If inflation is too high or it moves around a lot, the Bank of England says it is hard for businesses to set the right prices and for people to plan their spending.
High inflation rates also means people are having to spend more, while savings are likely to be eroded as the cost of goods is more than the interest we’re earning.
Low inflation, on the other hand, means lower prices and a greater likelihood of interest rates on savings beating the inflation rate.
But if inflation is too low some people may put off spending because they expect prices to fall. And if everybody reduced their spending then companies could fail and people might lose their jobs.
See our UK inflation guide and our Is low inflation good? guide for more information.
HOW TO SAVE ON FUEL
Making sure you are comparing prices and finding the lowest is essential for cutting spending on petrol.
You can search for the cheapest local pumps using petrolprices.com which should provide up-to-date figures.
All you need to do is pop in your postcode to see what prices are like near you.
Loyalty schemes are another way of making filling up cheaper.
Nectar members can shave up to 5p a litre off the cost of petrol.
While Clubcard members at Tesco stations earn one point for every two litres of fuel purchased.
You can also use Clubcard points to pay for fuel at Esso stations to help your money stretch further.
Keeping an eye out for advice on cheap petrol on social media is also wise, especially on local community groups.
How to cut the price of petrol and diesel
HERE’s how to save yourself money and fuel
- Make your car more fuel-efficient. Keep your tyres inflated, remove the roof rack and turn your air-con. This will reduce your engine power and the amount of fuel you’re using.
2. Drive slow and steady. The brake is a money burner, so avoid slamming it on. Accelerating slowly will also save you fuel and money.
3. Be a bargain hunter. Find the cheapest petrol or diesel in your area. PetrolPrices.com and Confused.com are free to use – just enter your postcode and how far you want to travel.