Inflation rises to 0.5 per cent in March

Annual CPI inflation rose by more than forecasters expected to reach 0.5 per cent in March, up from 0.3 per cent in February, figures released today show. The rise was due to a jump in the cost of air fares, which were affected by the timing of Easter. Growth in fuel prices slowed and consumers benefitted supermarket price wars that saw the cost of food fall by 0.6 per cent between February and March.

Core inflation, which strips out energy, alcohol, tobacco and food, rose to 1.5 per cent from 1.3 per cent – further evidence the UK’s period of low inflation may, slowly, be coming to an end.