The Office for National Statistics of the UK reported that CPI annual inflation rose in March to 3.5%, compared with 3.4% in February. The price level increased by 4.5% in 2011. According to the report food, clothing and recreation contributed most to inflationary pressure last month, while electricity, gas, other fuels and transport partially offset. The British pound strengthened in European trading hours from 1.5870 to 1.5970 against the dollar.