The rate of inflation in the UK has remained at 0% for March, maintaining a record two-month low, according to data from the Office for National Statistics (ONS).

The ONS showed falls in clothing and gas prices, offset by an increase in the price of motor fuels and food, helped the Consumer Price Index (CPI) stay at the same level for a second month, the lowest its been since records began in 1989.

Joshua Raymond, a chief analyst at City Index, said: "Were inflation to be calculated to two decimals, we would have seen a negative print of -0.01%.

"Clearly the UK remains on the cusp of deflation and this continues to put the Bank of England between a rock and a hard place when it comes to hiking interest rates. The threat of deflation is pushing market views for the BoE's first rate hike further out and whilst today's inflation reading will do little to change current forecasts, there were some fears we could see a deflationary print today."

Chris Leslie, Labour's shadow chief secretary to the Treasury, added that the UK's economy still has some way to go: "A few months of falling world oil prices won't solve the deep-seated problems in our economy or make up for years of bills rising faster than wages.

"Wages continue to be sluggish and are down £1,600 a year on average under this government. And tax and benefit changes since 2010 have left families £1,100 a year worse off on average," he said.