The U.K. producer price index increased 0.1% in March, while the annualized rate slipped to 2.0% from a revised reading of 3.0% in February, which is the lowest level of price growth in 20 months, and at the same time, the core rate fell to 3.3% from 3.7% in the previous month as falling oil prices countered the rise in food and beverages. Furthermore, input price rose 0.1% during the month, while the annual rate fell 0.4% from the previous year, and the data continues to reinforce a weakening outlook for inflation as price pressures deteriorate at a rapid pace. As price growth falters, the Bank of England may take further steps to shore up the economy as they maintain a 2% target for inflation over the medium-term, and as the central bank pledges to stem the risks for deflation, further action may be required as the economy faces its worst economic downturn in over half a century.