Inflation in the UK dropped more than 2.8 %in February, while strengthening Chancellor Rachel Reeves when preparing to deliver a spring statement with a high share.
The annual increase in consumer prices reported by the National Statistics Office on Wednesday was below 2.9 % of the forecast to economists who asked the Reuters agency and 3 % recorded in January.
The decline was driven by a decline in prices of clothing that dropped by 0.6 % in 12 months to February.
According to ONS, the key scale of basic price pressures for rates rates is 5 %in February. Economists predicted a decline to 4.9 %.
Permanent price pressures have forced the Bank of England to capture a “gradual” approach to reducing interest rates despite bland growth. Last week it maintained rates at 4.5 %.
Joe Nellis, an economic advisor to MHA, an accounting company, said that while the decline was a “welcome surprise for the government”, it was unlikely to change the gradual approach of Boe to reduce.
After the release of the Ons Libra data, it weakened by 0.3 % to $ 1.290, while the yield of a two -year -old gilded yield of 0.04 percentage point to $ 4.26 %.
Traders have also increased their bets that this year Boe will bring two more quarterly point cuts from 60 percent to 75 %, depending on the levels of the swap market.
Inflation data is coming because Reeves will now outline more than 10 billion GBPs of expenditure cuts later in an attempt to repair a hole in public finances caused by anemic growth and higher loan costs.
