Inflation continues to fall but expect a rebound next month

Inflation fell more than expected and for the second month in a row, official figures show.

The consumer price index (CPI) measure of inflation fell to 2.6% in March, down from 2.8% in February and 3% in January, according to Office for National Statistics (ONS) data.

It means prices are rising at the slowest pace since December and closest to the Bank of England's 2% target.

The rate is also lower than expected by economists polled by Reuters, who anticipated inflation of 2.7%.

But the drop is likely to be short-lived as a raft of bill rises kicked in at the start of April.

Energy, water, and council tax bills rose throughout the UK at the start of this month.

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