Commenting on today’s data from the Office of National Statistics, which saw the headline rate of CPI inflation fall from 3.4% in February 2024 to 3.2% in March 2024, Dr. Roger Barker, Director of Policy at the Institute of Directors, said:

“March’s inflation data confirmed that the headline inflation rate continues to fall, although perhaps less decisively than some might have expected. Although inflation in the goods sector is now running at very low rates (0.8%), service sector inflation remains stubbornly high (6.0%).

“This month’s figures revealed a significant decline in food and clothing inflation. However, inflationary pressures in sectors like alcohol and tobacco, communication and health actually increased.

“The latest data remains consistent with the prevailing narrative of gradually declining inflation towards the Bank of England’s 2% target. There is still some way to go before inflationary pressures are squeezed out of some sectors of the economy. Nonetheless, the trend is clear and the case for a cut in Bank Rate by the Bank of England at the next meeting of the Monetary Policy Committee on 9 May remains intact.”