Lower petrol prices helped to drive down UK inflation by more than expected in the year to March 2025, official data has revealed.
Inflation fell to 2.6% in March, down from 2.8% in February, according to data from the Office for National Statistics (ONS).
However, analysts expect the fall to only be temporary, with a rise in inflation expected from April as bills increase and business costs soar.
Responding to the data, Martin Sartorius, Principal Economist at the Confederation of British Industry (CBI), said: ‘March inflation coming in broadly in line with Bank of England expectations is welcome news, particularly ahead of a likely pick up in price pressures in April due to higher energy costs, regulated price increases, and the passthrough of Autumn Budget measures.
‘The introduction of higher US tariffs adds some uncertainty to the outlook, as they could put both upward and downward pressure on inflation in the UK. Businesses welcome the government’s ongoing commitment to the principles of free, fair, and open trade, as well as promising to go further and faster to support firms during this period of instability.’
23/04/2025
View all >
30/04/2026
Pensioners urged to be alert to scams
HMRC is warning pensioners to be on high alert for scams as the recovery of Winter Fuel Payments begins this month.
READ MORE
Skills planning ‘vital’ to better engage Gen Z
Skills planning is ‘vital’ to better engaging Generation Z with the workplace, says the British Chambers of Commerce (BCC).
Latest guidance for employers
HMRC has published the latest issue of the Employer Bulletin.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.