Soaring food prices meant the cost of living rose more than expected last month with inflation remaining above 10%.
Despite hopes inflation, which measures the rate of price rises, would drop into single figures, it fell to 10.1% in the year to March from 10.4% in February.
Food prices rose by at 19.1%, increasing by their fastest rate in 45 years.
The BBC says that inflation is widely expected to continue to fall this year.
However, falling inflation doesn't mean prices are on their way down too. Prices are still rising sharply compared with a year ago, just at a slower rate.
The figure is also well above the Bank of England's target of 2%.
Chancellor Jeremy Hunt said the figures "reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses".
He added that the UK is "on track to do this", with the independent Office for Budget Responsibility predicting inflation will halve this year.
FTSE 100
The UK's top share index, the FTSE 100, was down 22-points at 7,886 shortly after opening this morning, following yesterday's 29-point gain.
Brent crude futures were -0.50% lower at $84.35 a barrel.
Companies reporting today
- Antofagasta - Q1 production report
- ASML - Q1 results
- discoverIE Group - Full year trading statement
- Heineken - Q1 trading statement
- Hunting - Q1 trading statement
- IntegraFin - Q2 trading statement
- Network International Holdings - Q1 trading statement