The Office for National Statistics says that average weekly earnings in the three months to February rose 2.8 percent from the year before, ahead of the 2.7 percent inflation recorded during the month.
Unemployment in the same period fell by 16,000 to 1.42 million - the jobless rate of 4.2% is the lowest since 1975. Specifically women's clothing and shoes, and alcohol, aren't going up in price as fast as they were previously - both of those things are contributing to the drop in the inflation rate.
"The fact that inflation has fallen further means that real wages are likely to have strengthened more than expected, relieving some of the pressure on consumers", noted Paul Hollingsworth, senior United Kingdom economist at Capital Economics research group. Retailers have been struggling since the 2016 Brexit vote pushed the value of the pound down, and the cost of living rose.
"However, even this won't offer much succour to savers as any rises are likely to be modest and certainly nowhere near enough to cancel out inflation". Although we expect the BoE to raise its official policy rate by 25bps this year, the timing of this will likely be pushed back until August, given today's inflation print.
The International Monetary Fund lifted its growth forecast for Britain this year to 1.6 percent on Tuesday due to stronger overseas demand, but this is below Britain's historic growth rate and that expected for most advanced economies this year.
Brettell added that the interplay between wages and prices will be interesting over the coming months.
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And obviously, reducing the production and use of single-use plastics in the first place can't be emphasized enough. PET , invented in the 1940s, is commonly found in millions of plastic bottles.
However, Mr Thiru said spending was unlikely to increase with "consumers expected to remain under pressure from uncomfortably high debt levels, particularly if interest rates rise further". That figure, coupled with the inflation number, means that wages in the United Kingdom are growing in real terms for the first time since the beginning of 2017.
Paul Hollingsworth, senior United Kingdom economist at Capital Economics, said: "The fall-back in inflation in March probably won't prevent the MPC from hiking interest rates next month, although it perhaps makes it slightly less likely". It is a factor towards an improved business environment alongside lower real interest rates.
At the same time, notes Pantheon Macreconomics, the decline in inflation represents a passing of the United Kingdom economy's post-referendum import inflation.
While the United Kingdom has been an outlier, with inflation hitting 3% in recent months, Mr Grogan said today's figures surprised the market.
With wages rising to 2.8% in the three months to February and unemployment falling, inflation could head higher and many experts still think the Bank is likely to raise rates now to counter that. "Higher rates now will mean scope for a loosening of policy should the economy take a turn for the worse".