UK inflation drops to 2.6% in March, lower than expected

The UK’s annual inflation rate eased more than anticipated in March, offering a boost to the Labour government amid global economic uncertainties.

According to data released on Wednesday by the Office for National Statistics, the Consumer Prices Index (CPI) fell to 2.6% in March from 2.8% in February. Economists had forecast a more modest decline to 2.7%.

The better-than-expected inflation figures come as concerns grow over the potential impact of U.S. President Donald Trump’s tariffs, which could drive up global prices.