The Britain's consumer prices index (CPI) increased by 1.6 percent in the year to March 2014, down from 1.7 percent in February, marking the lowest inflation level since October 2009, said Office for National Statistics (ONS) Tuesday.

The largest contribution to the fall in the rate come from transport, principally motor fuels, with other smaller downward effects from the clothing, furniture and household goods sectors, according to the ONS.

British consumer prices rose merely 0.2 percent in March from the previous month. The core annual inflation rate, which exclude alcohol, tobacco, food and energy prices, rose 1.6 percent last month versus 1.7 percent in February, data showed.

CPIH, a measure include consumer prices and owner occupier's housing costs, increased 1.5 percent in the 12-month to March 2014, down from 1.6 percent a month previous, data also showed.