Summary

  • The UK inflation rate falls by more than expected to 2.6% in March - here's what that means for your money

  • Falling petrol prices drive down the rate, which measures how quickly prices are rising, from 2.8% in February

  • But the fall may only be temporary as analysts say it's expected to spike from April as rising bills and higher business costs take hold

  • Chancellor Rachel Reeves says the latest figures are "encouraging" but there's more to do, while shadow chancellor Mel Stride says Reeves's "choices are keeping inflation higher for longer"

  • The Bank of England has forecast inflation to rise further this year to 3.7%, and stay above its 2% target until the end of 2027

  • Will the Bank cut interest rates next month? The current economic climate makes predictions difficult, our cost of living correspondent says

Live Reporting

Edited by Rorey Bosotti

  1. How is the UK's inflation rate measured?

    Adam Wood
    BBC Breakfast producer

    The prices of hundreds of everyday items, including food and fuel, are tracked by the Office for National Statistics (ONS).

    This virtual "basket of goods" is regularly updated to reflect shopping trends, with virtual reality headsets and yoga mats added in 2025, and local newspaper adverts removed.

    Graphic showing what has been added to and removed from the inflation basket. The column for new entries includes virtual reality (VR) headsets, yoga mats, men's pool sandals and pulled pork. The column for removed items shows local newspaper adverts, fresh minced turkey and DVD rentals.

    The ONS monitors price changes over the previous 12 months to calculate inflation.

    The main inflation measure is called the Consumer Prices Index (CPI), and the latest figure is published every month.

  2. Inflation expected to fall as petrol prices come down

    Good morning and welcome to our live coverage ahead of the latest inflation figures in the UK.

    Last month, the general rate for the year to February was 2.8%.

    Economists are expecting that to drop to around 2.7% for March, which would bring the rate of price rises slightly closer to the Bank of England’s 2% target.

    We’ll get the official figures at 07:00 BST. Stick with us.