Today, the Office for National Statistics in the United Kingdom unveiled the latest figures for March inflation.

In March 2024, the Consumer Price Index (CPI) dropped by 0.3% to 4.2%, a decrease from February's 4.5%.

This marks the lowest inflation rate in the UK in over two years, since September 2021. However, the figures were slightly higher than anticipated by experts.

The monthly CPI also showed a 0.6% increase in March 2024, compared to 0.8% in March 2023.

The CPI including owner occupiers' housing costs (CPIH) remained steady at a 3.8% rise in the 12 months leading to March 2024.

Earlier this year, the Bank of England predicted a return to the 2% inflation target by the second quarter of 2024. With the current rates well above that, there is still work to be done to lower them in the coming months.

The Bank of England will review interest rates on May 9th. While a rate cut this month seems unlikely, the possibility of a cut within the first half of the year is now being closely watched. This would position the UK ahead of the US in terms of rate cuts, as expectations for the US are now being pushed to September.