Inflation falls but stays above 10% as drop smaller than expected by economists

Inflation has fallen

UK inflation has dropped over the last month but remains in double-digits.

The Office of National Statistics announced that the annual consumer prices index (CPI) dropped to 10.1% in March, down from 10.4% in February and down on the 41-year high of 11.1% seen in October 2022.

The drop is smaller than had been hoped by economists who had predicted a fall to 9.8%.

Inflation is widely expected to continue to come down over the coming months.

However the decrease in the inflation rate does not mean prices are falling, instead prices are simply rising at a slower rate.

Despite the fall, inflation remains well above the Bank of England's target of 2%.

Chancellor of the Exchequer Jeremy Hunt said: “These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses. “We are on track to do this – with the OBR forecasting we will halve inflation this year - and we’ll continue supporting people with cost-of-living support worth an average of £3,300 per household over this year and last, funded through windfall taxes on energy profits.”

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