UK Consumer Prices Index (CPI) inflation stayed at zero for the second month in a row, according to figures published for the Office for National Statistics (ONS), a long way off the Bank of England’s target inflation rate of 2%.

CPIH, which includes owner occupiers’ housing costs, such as mortgage interest payments, remained unchanged on February 2015, growing 0.3% in the year to March 2015.

Rain Newton-Smith, director of economics at the CBI, said inflation was likely to rise in later in the year as the downward pressure in lower oil prices picked up.

“Zero inflation in March comes as no surprise, given the drop in commodity prices we have seen for some time now. Inflation should start to pick up in the second half of the year, especially as the downward pressure from lower oil prices eases.

“Falling prices have seen money go that bit further for households’ weekly shop, and many firms are benefitting from lower oil prices. But North Sea producers, who create thousands of jobs, have certainly taken a hit.”

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Adam Chester, head of economic research and market strategy at Lloyds Bank Commercial Banking, said the news of inflation remaining steady at zero was good news for business and consumers.

“The final monthly inflation report before the UK public go to the polls shows consumer price inflation narrowly averted moving into negative territory in March. Although the headline rate was unchanged at zero per cent, core inflation (excluding food and energy) continued to soften suggesting the broader inflation environment remains exceptionally benign.”