UK inflation rate falls unexpectedly to 4% in March

The UK Consumer Prices Index (CPI) annual rate of inflation has fallen unexpectedly 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 sharp rise last month.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - fell to 5.3% from 5.5% in February.

Darren Morgan from the Office for National Statistics said supermarket sales had "driven" the drop in food prices.

But he also warned that there was uncertainty over the future cost of food, and said transport costs were continuing to rise.

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