Inflation Falls To 1.6%

The Office for National Statistics (ONS) reports that UK inflation rate as measured by the Consumer Prices Index (CPI) fell to 1.6% in March from 1.7% in February.

This is the third consecutive month inflation has been below the Bank of England's 2% target rate, and the lowest rate since October 2009.

The largest contribution to the fall in the rate came from petrol prices.

The rate of Retail Prices Index (RPI) inflation also fell to 2.5% from 2.7%.

What does this mean?

It gives the Bank of England more time to keep interest rates low.