Commenting on the figures, Danske Bank Economist Conor Lambe said:
“The CPI inflation rate was unchanged from February and stood at 2.3 per cent in March. This marks the second consecutive month of above-target inflation in the UK.
“Producer price inflation dropped a little in March. The output price inflation rate was 3.6 per cent, down slightly from 3.7 per cent in February. The input price inflation rate decreased from 19.4 per cent in February, to 17.9 per cent in March.
“Despite these relatively small falls, the data still shows that there is considerable inflationary pressure further up the supply chain. Therefore, consumer price inflation is expected to remain elevated for some time yet.
“Higher inflation will put pressure on real wage growth and household budgets and will likely squeeze consumer spending. The impact of this is expected to be felt most by businesses whose revenue is drawn from discretionary consumer spending, including some retailers, restaurants and hotels.”
This comment was published in response to the March 2017 UK inflation data published by the ONS on 11th April 2017.