Price growth in the U.K. unexpectedly dropped to close the first quarter as lower food prices offset increases in housing and energy costs, according to The Daily Telegraph. On Tuesday, the Office for National Statistics reported that annual consumer price inflation dropped to 4% in March from the 28-month high of 4.4% annual rate of price growth that was recorded during February. Analysts had expected inflation to be unchanged in March from the previous month.

The drop brings inflation back towards the Bank of England’s 2% target, although price growth is still proceeding at a rate double that figure. However, Philip Shaw of Investec said the data was a “very welcome surprise” and added, “It should stave off a rate rise in May.” The drop was driven by a record monthly decline in food prices, and core inflation dropped from 3.4% to 3.2% in March. The ONS also reported that the retail price inflation index dropped to 5.3% from 5.5% previously.

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