Inflation dips due to lower fuel prices

UK inflation slowed last month on the back of lower petrol prices but remained in double figures as household budgets continue to come under pressure.

The Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) inflation fell to 10.1% in March from 10.4% in February.

Nevertheless, it remained higher than experts had predicted as food and drink prices continued to soar.

Economists had forecast inflation would be 9.8% for the month.

The high level of inflation continues to keep pressure on the Bank of England regarding interest rates, with inflation still heavily above the 2% target rate.

The ONS revealed food prices increased by 19.1% year-on-year, the sharpest jump since August 1977.

Bread, cereals and fruit prices increased, while the impact of vegetable shortages also continued to weigh on inflation.