Inflation across the UK fell in March, as the government’s coronavirus lockdown hit demand for some goods.
Consumer prices rose by 1.5% per year last month, the Office for National Statistics reports. That’s down from 1.7% in February, and the lowest since December.
Laura Suter, personal finance analyst at investment platform AJ Bell, says the plunge in oil prices this month will drag inflation down too.
“Even before the recent capitulation, the price of oil was on the slide in March and this dragged inflation down slightly from February’s 1.7% to 1.5%. Oil prices have a massive impact on the UK’s inflation rate and with prices at the pump and home energy costs getting cheaper we’d expect this trend to continue for the next couple of months.
“What’s more, with retailers having to shut their doors we’re seeing more and more offer discounts to shoppers to move their buying online.
“In particular clothing and department stores have been hit, as people don’t need new outfits to sit on their sofa all day and are delaying large purchases amid worries about where the economy is headed.
“One area of slight upward pressure was from alcohol and tobacco, partly because we’re drinking at home more and partly because tobacco duty increased in March following the Budget.”
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