On a monthly basis CPI saw a 0.3% rise in March of this year, a fall from the 0.6% seen in March 2024.

Meanwhile CPIH rose by 3.4% in the 12 months leading to March, down from 3.7% in January, while on a monthly basis March saw a 0.3% rise compared with the 0.6% from the same time last year.

According to the ONS, the largest downward contributor to monthly change in CPI and CPIH annual rates came from recreation and culture, and motor fuels with a further downward effect in CPIH from housing and household services.

Finance professionals have given their insight on the latest inflation drop.

Paul Noble, CEO at Chetwood Bank: “Today’s inflation figures suggest a fragile but promising momentum – a second month of stability that hints we may be turning a corner, though not yet out of the woods.

“For many, this will feel less like a breakthrough and more like a cautious exhale, especially given the many troubling factors surrounding the economy.

“The Spring Statement outlined a careful balance between support and sustainability – and today’s figures should give the Chancellor a little more breathing room.

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“That said, looming global pressures, including President Trump’s tariff policies, could still feed into rising costs in the months ahead. The path to long-term price stability is far from guaranteed.

“For now, the Bank of England may feel more confident in its long walk to rate cuts, though it will remain watchful of any external shocks.

“This is also a crucial moment for savers – locking in strong rates while they remain available could provide valuable protection.

“Lenders and financial institutions have a duty to offer smart, flexible options that help customers navigate an uncertain landscape with confidence.”

Nick Hale, CEO at Movera: “Today’s CPI inflation figures, which see a fall from 2.8% to 2.6%, are a welcome sign of progress. After a turbulent winter and an economic contraction in early 2025, any indication that price pressures are easing will be greeted with cautious optimism.

“While it is unlikely to shift the BoE thinking on interest rates quite yet, a downward trend in inflation strengthens the case for a cut in the coming months, something that would certainly be warmly welcomed by homebuyers and homeowners alike, particularly as affordability remains one of the biggest barriers in the housing market.

“Even in uncertain times, Movera remains committed to helping people move home with confidence. Whether rates shift sooner or later, we will continue to deliver fast, reliable services for those looking to make their next move.”