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The rate of inflation has eased slightly but still remains above 10%, according to official figures showing food and drink costs at a 45-year high.

The Office for National Statistics (ONS) said the consumer prices index (CPI) measure slowed to 10.1% in March from 10.4% the previous month.

Economists had largely expected a figure of 9.8%.

The data represents a slight improvement in the energy-driven cost of living crisis as fuel prices fell back to levels seen a year ago when Russia’s war in Ukraine prompted a spike in oil costs.

However, upwards pressure remained from household gas and electricity and food, including essentials such as bread, milk and eggs.

Food and non-alcoholic drink inflation was measured at 19.1% by the ONS – the highest level since August 1977.

High commodity and production costs are mostly to blame.

Other factors behind the spike were highlighted in February’s inflation data when the salad shortage struck supermarkets.

A crumb of comfort is that prices for goods such as tomatoes and cucumbers are tipped to fall sharply as the UK growing season gathers pace.

ONS chief economist Grant Fitzner said of the easing in overall inflation in March: “The main drivers of the decline were motor fuel prices and heating oil costs, both of which fell after sharp rises at the same time last year.

“Clothing, furniture and household goods prices increased, but more slowly than a year ago.

“However, these were partially offset by the cost of food, which is still climbing steeply, with bread and cereal price inflation at a record high.

“The overall costs facing business have been largely stable since last summer, although prices remain high.”

The latest figures were released against a backdrop of hopes that a deceleration in inflation would allow the Bank of England to pause its action to battle inflation through interest rate rises.

It has raised Bank rates at 11 consecutive meetings since December 2021 in a bid to keep a lid on price pressures in the economy.

While policymakers can do nothing about things like energy – the main driver of the inflation crisis – the Bank can look to take demand out of the economy by raising borrowing costs.

It will have been encouraged by the easing in the headline rate of inflation.

But a separate measure closely watched by the Bank that strips out volatile price elements, known as core inflation, remained static at 6.2%.

Employment data released on Tuesday also showed that wages continued to creep upwards, albeit at levels well below CPI.

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What is driving wages up?

The Bank has previously expressed worries that wage rises seeking to combat the hit to household budgets from inflation, which have come into sharp focus during the winter strikes across the economy, risk stoking inflation ahead.

Financial market data suggested the chance of a 0.25 percentage point rise in Bank Rate at the next meeting, due next month, had risen from 80% to 95%.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented: “‘The heat has been turned down on the bubbling cauldron of prices, but inflation is still scalding and interest rates look set to be pushed up again to try and cool it down rapidly.

“Instead of retreating below double digits, CPI is staying stubbornly high, causing more pain for companies and consumers.”

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Chancellor Jeremy Hunt said: “These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses.

“We are on track to do this – with the OBR (Office for Budget Responsibility) forecasting we will halve inflation this year – and we’ll continue supporting people with cost-of-living support worth an average of £3,300 per household over this year and last, funded through windfall taxes on energy profits.”

Labour shadow chancellor, Rachel Reeves, said: “The question for families remains as real as ever – when will they feel better off under this Conservative government?

“And, why when the cost of living continues to bite, is the government refusing to freeze council tax this year, paid for by a proper windfall tax on oil and gas giants?”

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What do dolphins get up to beneath the waves? Their poo has the answers

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What do dolphins get up to beneath the waves? Their poo has the answers

Scientists are turning detective to work out what British dolphins are up to beneath the waves – by using forensic-style DNA techniques on their poo.

Conservationists have been studying the 250 or so bottlenose dolphins living in Cardigan Bay, west Wales, over many decades.

Up to now, they have only been able to observe the dolphins as they surface to breathe or play, identifying the animals from the unique marks on their dorsal fins to establish which animals were hanging out together and where.

Dolphins in Cardigan Bay. Pic: Sarah Perry/WTSWW
Image:
Dolphins in Cardigan Bay. Pic: Sarah Perry/WTSWW

But now for the first time scientists are using DNA excreted by the dolphins in their poo to build a more complete picture of their lives.

It allows them to identify the sex of individuals and how they are related to other animals. Signficantly, it also shows what the dolphins have been eating.

Dolphin poo. Pic: Sarah Perry/WTSWW
Image:
Dolphin poo. Pic: Sarah Perry/WTSWW

Dr Sarah Perry, marine conservation manager at The Wildlife Trust of South and West Wales, said: “In order to be able to conserve them, we need to know why they’re here and a big a missing part of that is, what they’re feeding on.

“Is that changing at different times of the year? Are certain species of fish more important to them early on in the year, in the spring, and the summer months, and then does that change over the autumn and winter months?

“Are certain species important for younger animals? We don’t know that, so that kind of information, we need to find out.”

Dr Sarah Perry
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Dr Sarah Perry

Catching dolphin poo involves a large element of luck.

The animals occasionally eject a cloud of waste material as they swim.

But it quickly sinks, so the scientists’ boat needs to be close enough for them to scoop it out of the sea with a fine-meshed net.

A sample is then sent to a lab at the University of Aberystwyth, where DNA is extracted for analysis.

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Scientists on the hunt for dolphin poo.
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Scientists on the hunt for dolphin poo

Dolphins adapting to effects of climate change

Results so far suggest the dolphins are having to adapt to a change in fish species as the water warms.

Dr Niall McKeown
Image:
Dr Niall McKeown

Dr Niall McKeown, a marine biologist at the university, said: “We are seeing large amounts of sardine, sprat, and anchovy.

“This is quite interesting because these are species that are known to have increased in abundance in Welsh waters in recent years in response, we believe, to climate change.”

A scientist analyses a sample
Image:
Dr Niall analyses a sample

Scientists unsure why dolphin numbers are falling

But questions remain about the dolphins.

The number in Cardigan Bay seems to be falling, but scientists are not sure whether that’s a natural cycle or a response to other factors.

Boat noise and disturbance from some fishing activities, such as scallop dredging, could impact the animals, which rely on sound to communicate.

Dr Parry said: “How lucky are we to have such an important population of dolphins here? It’s crazy that we really don’t know that much about them.”

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Sir Alan Bates attacks ‘kangaroo court’ Post Office scheme after ‘take it or leave it’ offer

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Sir Alan Bates attacks 'kangaroo court' Post Office scheme after 'take it or leave it' offer

Sir Alan Bates has accused the government of presiding over a “quasi kangaroo court” for Post Office compensation.

Writing in The Sunday Times, the campaigner, who led a years-long effort for justice for sub-postmasters, revealed he had been given a “take it or leave it” offer that was less than half of his original claim.

“The sub-postmaster compensation schemes have been turned into quasi-kangaroo courts in which the Department for Business and Trade sits in judgement of the claims and alters the goal posts as and when it chooses,” he said.

“Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items.”

More than 900 sub-postmasters were prosecuted between 1999 and 2015 after faulty Horizon accounting software made it look as if money was missing from their accounts.

Many are still waiting for compensation despite the previous government saying those who had their convictions quashed were eligible for £600,000 payouts.

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‘It still gives me nightmares’

After the Post Office terminated his contract over a false shortfall in 2003, Sir Alan began seeking out other sub-postmasters and eventually took the Post Office to court.

More on Post Office Scandal

A group litigation order (GLO) scheme was set up to achieve redress for 555 claimants who took the Post Office to the High Court between 2017 and 2019.

Sir Alan, who was portrayed by actor Toby Jones in ITV drama Mr Bates Vs The Post Office, has called for an independent body to be created to deliver compensation.

He added that promises the compensation schemes would be “non-legalistic” had turned out to be “worthless”.

It is understood around 80% of postmasters in Sir Alan’s group have accepted a full and final redress, or been paid most of their offer.

Read more:
Post Office scandal explained

Who are the key figures in the scandal?

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‘Lives were destroyed’

A Department for Business and Trade spokesperson told Sky News: “We pay tribute to all the postmasters who’ve suffered from this scandal, including Sir Alan for his tireless campaign for justice, and we have quadrupled the total amount paid to postmasters since entering government.

“We recognise there will be an absence of evidence given the length of time which has passed, and we therefore aim to give the benefit of the doubt to postmasters as far as possible.

“Anyone unhappy with their offer can have their case reviewed by a panel of experts, which is independent of the government.”

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PM could lift controversial benefit cap in budget – as Farage makes two big election promises

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PM could lift controversial benefit cap in budget - as Farage makes two big election promises

Sir Keir Starmer could decide to lift the two-child benefit cap in the autumn budget, amid further pressure from Nigel Farage to appeal to traditional Labour voters.

The Reform leader will use a speech this week to commit his party to scrapping the two-child cap, as well as reinstating winter fuel payments in full.

The prime minister – who took Westminster by surprise at PMQs by revealing his intention to row back on the winter fuel cut – has previously said he would like to lift the two-child cap if the government could afford it.

There are now mounting suggestions an easing of the controversial benefit restriction may be unveiled when the chancellor delivers the budget later this year.

According to The Observer, Sir Keir told cabinet ministers he wanted to axe the measure – and asked the Treasury to look for ways to fund the move.

It comes after the government delayed the release of its child poverty strategy, which is expected to recommend the divisive cap – introduced by former Tory chancellor George Osborne – is scrapped.

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Why did Labour delay their child poverty strategy?

Ministers have already said any changes to winter fuel payments, triggered by mounting political pressure, would only be made when the government’s next fiscal event rolls round.

The Financial Times reported it may be done by restoring the benefit to all pensioners, with the cash needed being clawed back from the wealthy through the tax system.

The payment was taken from more than 10 million pensioners this winter after it became means-tested, and its unpopularity was a big factor in Labour’s battering at recent elections.

Before Wednesday’s PMQs, the prime minister and chancellor had insisted there would be no U-turn.

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Starmer vs Reeves – the ‘rift’ in Downing Street

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Will winter fuel U-turn happen?

Many Labour MPs have called for the government to do more to help the poorest in society, amid mounting concern over the impact of wider benefit reforms.

Former prime minister Gordon Brown this week told Sky News the two-child cap was “pretty discriminatory” and could be scrapped by raising money through a tax on the gambling industry.

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Brown questioned over winter fuel U-turn

Mr Farage, who believes Reform UK can win the next election, will this week accuse Sir Keir of being “out of touch with working people”.

In a speech first reported by The Sunday Telegraph, he is expected to say: “It’s going to be these very same working people that will vote Reform at the next election and kick Labour out of government.”

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