Britain's inflation rate unexpectedly slowed to its weakest pace in more than a year in March, the Office for National Statistics (ONS) said today.
Consumer prices rose 0.2 per cent last month to put the annual rate at 1.8 per cent, down from the 2 per cent recorded in February and predicted by economists for March.
That came as milk prices fell by an average two pence per pint after increases a year ago. The ONS said there were also large downward effects from air fares falling and petrol pump prices holding steady, compared to increases a year earlier.
The fall in headline inflation below the Bank of England's 2 per cent target is likely to support those economists who predict the next move in interest rates is down from the current 4.5 per cent.
However, policymakers have noted that people's inflation expectations have risen in recent surveys and that high energy bills remain a concern.
The ONS noted a large upward effect on CPI in March from higher gas and electricity bills.
PA