The rate of U.K. inflation dropped to 3.2 percent in March, according to ONS figures released this morning
The biggest contributor to the drop in annual rates came from food, with prices rising by less than a year ago, while the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but falling a year ago said the ONS
Inflation has fallen from a 40 year high of 11.1 per cent in October 2022 and is set to fall further in the next few months with the cut in the energy price cap
Grant Fitzner, chief economist at the ONS, said: “Inflation eased slightly in March to its lowest annual rate for two and a half years.
“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
“Similarly to last month, we saw a partial offset from rising fuel prices.”
Rebecca Florisson, Principal Analyst at the Work Foundation at Lancaster University commenting on the figures said:
“Inflation might be falling, but those in the private rented sector are in the midst of a cost of renting crisis.
“The record 9.2% rise on the year is bad news for all renters, who are seeing rents outpace average wage rises of 6%. However, it is particularly challenging for the 1.4 million private renters in severely insecure employment – such as those on zero-hour contracts or in temporary work – who face insecurity at work and at home. This particularly affects severely insecure workers from Black and Asian backgrounds and workers aged 25 to 34.
“Private renters already spend a higher percentage of their monthly earnings on housing than those in all other forms of accommodation. And insecure workers are particularly vulnerable to the rising cost of rents as they earn on average £3,276 less than those in secure jobs.
“With the average monthly private rent for England reaching £1,285 many low-paid workers will fear they are being priced out of their homes.
“Against this background, the priority for the next Government must be to reform the private rental market to make it fairer for renters, and bring employment legislation into the 21st century by guaranteeing all workers minimum hours and the real living wage, to mitigate their vulnerability against rising housing costs.”
