The rate of inflation slowed again in March to reach 2.6%, the Office for National Statistics (ONS) has revealed.

The latest figure follows consumer price index (CPI) inflation coming in at 2.8% in the year to February.

CPI inflation increased by 0.3% month-on-month in March, after rising by 0.6% in March 2024.

The ONS found that the largest downward contributions to the monthly change in CPI annual rates came from recreation and culture, and motor fuels.

Chief executive officer at Propertymark, Nathan Emerson, said that the latest figures will provide "welcome relief" to people across the UK.

He stated: "Worries about the UK and the global economy in response to wider international events has provided a generally downbeat outlook for many consumers. However, today’s news will hopefully provide much welcome relief to many people considering taking advantage of the traditionally busy spring and summer months to purchase their next home.

However, managing director for retail direct at Standard Life, Dean Butler, did not reflect this optimism, following changes to employer national insurance contributions, the national living wage and stamp duty.

He added: "While the weather’s been picking up, inflation has been cooling down, falling to 2.6% in March. Unfortunately, this might be the last of the good news, as the impact of a tumultuous April kicks in next month – energy price rises and other bill increases combined with the impact of tariff turmoil all look set to make their mark.

"While these economic conditions are still evolving, markets are still anticipating a cut to the base rate at next month’s MPC meeting. While this will be welcomed by borrowers and mortgage holders, it will mean lower interest rates for savers. With the possibility of inflation rising once April price rises are factored in, shopping around for the best rates remains crucial in order to avoid losing returns on savings."

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