The UK inflation rate as measured by the Consumer Prices Index (CPI) fell to 1.6% in March from 1.7% in February, according to the Office for National Statistics (ONS).
It is the third consecutive month inflation has been below the Bank of England's 2% target rate, and marks a fresh four-year low.
The largest contribution to the fall in the rate came from petrol prices.
The rate of Retail Prices Index (RPI) inflation also fell to 2.5% from 2.7%.
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