Following the first increase in February after three consecutive drops in the months prior, inflation has now returned to the level it was in January this year.

The CPI including owner occupiers’ housing costs (CPIH) also fell to 8.9%, compared to 9.2% in February.

According to ONS data, the largest downward contributions to the monthly change in both the CPIH and CPI rates came from motor fuels, and housing and household services.

They were partially offset by upward contributions from food and recreation, and culture goods and services.

Meanwhile, the latest House Price Index (HPI) data — released in tandem with the inflation figures — showed that UK average house prices rose by 5.5% in the year to February 2023.

Average house prices came in at £288,000, marking a slight decrease from the previous month’s figure.

Following the first increase in February after three consecutive drops in the months prior, inflation has now returned to the level it was in January this year.

Industry experts react to latest ONS inflation and HPI figures

This section will be constantly updated throughout the day — check regularly for more comments from industry experts

3:15pm

Adam Oldfield, chief revenue officer at Phoebus Software:

“Any news that may mean the Bank of England (BoE) takes its foot off the interest rate accelerator would be good for the housing market.  

“There is no doubt that affordability is a worry and lenders will be working around the age-old dilemma of continuing to meet lending targets, versus more defaults down the line. 

“Being prepared for both scenarios is a juggling act, but one that every lender needs to have systems and people in place to deal with.”

2:45pm

Andrew Lazare, managing director at Mint Property Finance:

“We may have to endure two or three more months of mixed metrics as external factors continue to have an impact on the market. 

"The inflation rate is still moving in the right direction and falling house prices have played a big part in slowing said rate.

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“The key thing for our industry and the wider economy is to take the responsible stance; carry on with the job at hand and not make knee-jerk reactions based on sensationalist headlines."

1:30pm

Paul McGerrigan, CEO at fintech broker Loan.co.uk:

“Many in the UK will breathe a sigh of relief at the news inflation is back on a moderate downward trajectory following February’s shock increase. 

“We expect the UK economy is heading for an upturn, with much lower inflation and perhaps even interest rate reductions in the latter part of this year, but after the events of the last three years nothing can be taken for granted.

“It’s still a bumpy path for borrowers and expert financial advice is critical.”

1:15pm

Douglas Grant, group CEO at Manx Financial Group PLC: 

“Having narrowly avoided a recession, the UK economy could be showing signs of light at the end of the tunnel. 

"But SMEs must review their existing lending structures and ensure they are prepared for further challenges. 
“While many were proactive by locking their debt into fixed rate structures, it is too late for other businesses that were not as forward-thinking.

"The government must put in place a robust plan to help support SMEs, which are the backbone of the UK economy."

11:30am

Scott Clay, head of introducers at Together:

“The fall in February’s HPI from 6.5% to 5.5% shows the current lack of consumer confidence in the market.

“That is not to say all activity is at a standstill. Buyers may be able to benefit from lower rates as inflation begins to start falling to lower levels than their peak last October.

“For those approaching mortgage renewals who don’t fit the criteria of high-street banks, it is essential to consider specialist lenders, as they can take into account individuals’ circumstances and offer more flexible finances to help secure home ambitions.”

Andrew Gething, managing director at MorganAsh:

“It’s certainly encouraging to see inflation returning to its downward path.

“It will be interesting to see how the BoE reacts to this news when the Monetary Policy Committee next meets in April, with another rise already priced in by many of the markets.

“The percentages [of CPI and CPIH] are moving in the right direction, but just not fast enough for the most vulnerable of households.

“This will be a crucial time for lenders and brokers to ensure all borrowers are getting the advice and support they need. This all starts with monitoring vulnerability consistently.” 

Simon Webb, managing director of capital markets and finance at LiveMore:

“Inflation has been in double digit figures since last September but a fall, even if only by 30 basis points, is better than nothing.

“Let’s hope this is the start of the downward trajectory towards the BoE 2% target.

“But we are not out of the woods yet. Food inflation is still exceptionally high and the energy market is very volatile, so there is still price uncertainty.

“Yet the fall in the cost of petrol bodes well for inflation if it continues to drop.

“Looking to what this will do to the BoE base rate decision next month, it has said it will be data driven and the next meeting is still a number of weeks away. But it is safe to say the days of higher interest rates will be around for quite a while yet.”