UK inflation falls to lowest level since October 2009

UK consumer price inflation fell again in March for the ninth month in a row to 1.6% from 1.7% in February.  Prices for clothes and household goods rose at a slower pace to bring the figure down and services fell to a level not seen for 5 years.  However, the biggest factor pushing inflation lower was the falling price of petrol and diesel which inevitably feeds through to the price of delivered consumer goods. Inflation of 1.6%, the lowest since October 2009, is now at a level where the fall in real pay can now stabilise following years of decline.