UK inflation has fallen to its lowest level since September 2021 and, for the first time in two years, dropped below rates in America.

According to ONS stats released today, CPI inflation slowed to 3.2 per cent in March, down from 3.4 per cent the month before. Core inflation – which strips out volatile energy and food prices – fell to 4.2 per cent in March from 4.5 per cent in February.

There is a slight caveat to this encouraging data. These drops were smaller than forecast. CPI and core inflation had been expected to drop to 3.1 and 4.1 per cent respectively. The fall in food prices last month was offset by a rise in the cost of fuel.