Easing the agony for UK, inflation unexpectedly declined in March despite the rally seen in commodity prices. Annual CPI inflation dropped back to 4.0% from 4.4% opposing expectations for steady price pressures, where prices declined on the month to a rise of 0.3% half of the expected pace and below the previous rise of 0.7%.

Core CPI inflation fell to 3.2% from 3.4% and below the expected 3.3% rise. Retail Price Index on the month rose 0.5% half the previous month's pace of 1.0% and below the expected 0.6% and on the year eased to 5.3% from 5.5%. Excluding mortgages installment payments the index fell back slightly to 5.4% from 5.5%.