A FALL in fuel prices helped ease inflation last month — but experts warned of choppy waters ahead for the economy.
dipped from 2.8 per cent to 2.6 in March as paid less at the pumps and the cost of groceries fell.
Calls are now likely to grow for the to cut interest rates from 4.5 per cent to 4.25 next month.
But inflation could shoot up in May with , and mobile phone bills rising.
Chancellor of the Exchequer, said inflation falling for two months in a row and wages growing faster was “positive” but there was “more to be done”.
“I know many families are still struggling with the and this is an anxious time because of a changing world. “
She added: “That is why the Government has boosted pay for three million people by increasing the , frozen fuel duty and begun rolling out free breakfast clubs in primary schools.”
Michael Saunders, from Oxford Economics, said: “Inflation is a little lower than expected, but this is very much the calm before the storm.
“In the April figures, which will come out next month, we’ll see increases in gas prices, electricity prices and water charges that are likely to lift inflation above 3pc while reducing consumer spending power.”;
He added that the effects of “Storm Donald”; will start to be felt with the impact of .
