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"UK inflation has fallen to 3 per cent, prompting hopes that an interest rate cut will follow. The fall in the Consumer Price Index (CPI) data, published by the Office of National Statistics, follows a surprise rise in December to 3.4 per cent. It shows a return to the gradual downward trend seen at the end of last year, with analysts estimating it remains on course to hit the government's 2 per cent target by April."
UK inflation fell to 3 per cent, reversing a surprise December rise to 3.4 per cent and returning to a gradual downward trend. The Consumer Price Index data from the Office of National Statistics suggests inflation remains on course to reach the government's 2 per cent target by April. Rising unemployment, slowing wage growth and a weak economy increase the likelihood that the fall could prompt the Bank of England to cut interest rates at the Monetary Policy Committee vote on 19 March. Inflation peaked at over 11 per cent in October 2022 and has eased more slowly than households and businesses desired, keeping interest rates higher for longer.
Read at www.independent.co.uk
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