UK inflation slows by less than expected to 3.2% in March

The slowdown in Britain's inflation rate contrasts with an acceleration of headline price growth in the US which rose for a second month in a row to 3.5%, according to data published last week.

The Bank of England - which has an inflation target of 2% - and economists polled by Reuters had forecast an annual rate of 3.1%.

British consumer price inflation slowed by less than expected to a two-and-a-half-year low of 3.2% in annual terms in March, down from a 3.4% increase in February, the a national statistics office said.

The Bank of England - which has an inflation target of 2% - and economists polled by Reuters had forecast an annual rate of 3.1%.