RPI Falls To 3.1% In March

The UK inflation rate fell to 3.1% in March, down from 3.2% in February, according to the latest figures from the Office Of National Statistics (ONS).

However, the underlying rate, which excludes mortgage interest payments, remained unchanged at 3%, the highest level since May 1998. The continued upward pressure was attributed to the high costs of petrol and the new congestion charging scheme in London.

Underlying inflation has now been above the government’s 2.5% target for four months in a row, but analysts claim the Bank Of England is unlikely to raise interest rates due to weakness in the economy.

The figure also showed the headline rate of inflation rose to 3.2%, up from 2.9% in January. This increase has been attributed to the Bank of England’s surprise interest rate cut in February.

The retail prices index for March was 179.9%.

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