The rate of inflation fell to just under three percent in March as the impact of falling oil prices began to kick in.

According to statistics released by Government this afternoon, consumers paid 2.7 percent more in March than they did a year ago for the basket of goods and services included in the Consumer Price Index (CPI).

The Government statistics report said: “This was considerably lower than the 4.4 percent measured in February as consumers began to experience the full effect of the sharp drop in world oil prices that occurred during late summer 2008.”

Since December last year, the food sector has been the largest contributor to the 12 month increase in the CPI. On average, the cost of food items increased 7.5 percent year-over-year.

The rent, and health and personal care sectors also had a strong influence on the annual rate of inflation, as price shifts in these sectors were 2.6 percent and 7.1 percent respectively.

* Full story in tomorrow’s Royal Gazette.