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UK inflation rate unexpectedly falls to 4% in March

An early rise in interest rates is less likely after a surprise drop in the rate of inflation - the first in 8 months.

The UK Consumer Prices Index (CPI) annual rate of inflation has fallen to 4%, down from 4.4% in February. The drop was largely due to a record monthly fall in the price of food and non-alcoholic drinks, which fell 1.4%, compared with a rise last year.

Experts say the Bank of England will now be under less pressure to take action on interest rates.

Stephanie Flanders reports.

  • 12 Apr 2011