According to the Office for National Statistics (ONS), consumer prices rose by 3.2% annually, down from 3.4% in February. This figure exceeded the forecast of 3.1%, indicating persistent price pressures.

Kevin Brown, savings specialist at Scottish Friendly, said: “While inflation is down again, it has fallen less than expected and reaffirms the bank’s willingness to keep rates at higher levels. The path to bringing inflation down has been bumpy, leaving savers guessing as to whether they’ll see cash returns start to fall.

“The stubbornness of price rises suggests savers have less to be worried about for now, but in the medium-term rate cuts will come, particularly as GDP flatlines and the jobs market is showing signs of struggling.

“Despite these surprise figures, rate cuts are expected to start in the Summer so time is running out for savers to maximise potential cash returns. As cash products will feel the impact when the rate cuts come, those looking to save for the medium- to long-term may want to consider investment options to try and generate more consistent returns.”