UK inflation smashed expectations in March

UK inflation came in at 0.4%, according to official figures released on Tuesday.

The Office for National Statistics says the consumer price index - the key measure of inflation in Britain - was 0.4% in March

The year-on-year figure, the most watched measure, was 0.5%

Core inflation figures, which strip out volatile goods like oil and food, came in at 1.5%. All three numbers were beats on the forecasts of economists.

Prior to the last few of months, inflation had stayed between -0.1% and 0.1% for 10 months due to a collapse in oil prices and a supermarket price war that has led to slashed prices.

The reading is well below the 2% wanted by Britain's policymakers. UK inflation hasn't been higher than 2% since late 2013.

More to come ...

NOW WATCH: This hidden subplot of 'Game of Thrones' spells out the real trouble for the Lannisters