UK inflation falls to lowest level since late 2021 as food prices ease further

Inflation in the U.K. fell to its lowest level in two and a half years in March after a further easing in food prices. The Office for National Statistics said Wednesday that consumer prices rose by 3.2% in the year to March, down from 3.4% in February. That’s the lowest level since September 2021. Inflation is still running higher than the Bank of England’s target of 2% but the direction of the move appears clear. It is set to fall further in April, possibly to below 2%, as a result of sharply lower domestic energy bills, which economists think could prompt rate-setters to consider a cut in interest rates in the next few months.