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Inflation falls as result of lower petrol prices

April 16 2025

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.'

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