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Inflation falls to 4%

The UK Consumer Prices Index (CPI) annual rate of inflation has fallen to 4%, down from 4.4% in February.

The drop was largely due to a record monthly fall in the price of food and non-alcoholic drinks, which fell 1.4%, compared with a sharp rise last year.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - fell to 5.3% from 5.5% in February.

The fall eases pressure on the Bank of England to raise interest rates.

The pound fell almost 1.5 cents against the dollar immediately after the figures were announced, to $1.6238, as investors decided the Bank was unlikely to raise rates as soon as they had previously thought.

Against the euro, it fell one cent to 1.1237 euros.

The Office for National Statistics (ONS) said supermarkets had reduced their prices in March.

This was posted in Bdaily's Members' News section by Ruth Mitchell .