The Office for National Statistics (ONS) said that Consumer Prices Index inflation stood at 3.2% in March, down from 3.4% in February.
It marks the lowest level since September 2021 but was nonetheless slightly higher than economists expected.
Economists had predicted a reading of 3.1% for the month.
ONS chief economist Grant Fitzner said: “Inflation eased slightly in March to its lowest annual rate for two and a half years.
“Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.
“Similarly to last month, we saw a partial offset from rising fuel prices.”
