Figures released by the Office for National Statistics show that cuts to mortgage rates helped to drive the headline rate of inflation down to a thirteen month low of 2.3% in March, compared to 2.7% in February.
The underlying inflation rate remained unchanged at 1.9%. This means the underlying rate has now remained below the target of 2.5% set by the Government for 23 months and leaves scope for further interest rate cuts by the Bank of England next month.
The Retail Price Index for March 2001 was 172.2.
