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NEW DELHI: Britain‘s annual inflation rate dropped more than expected in February, as per official data released on Wednesday.
Inflation stood at 3.4 percent last month, the lowest since September 2021, following a peak of 4.0 percent in January, according to the Office for National Statistics.
The consensus was for a 3.5 percent increase in consumer prices in February, as per a Bloomberg survey.Despite this decline, inflation remains well above the Bank of England‘s two-percent target.
This has sparked speculation about a possible interest rate cut by the Bank of England later this year.
The Bank of England is anticipated to maintain its main interest rate in the upcoming announcement on Thursday after the latest monetary policy meeting.
However, analysts are foreseeing a potential rate cut as early as June.
Grant Fitzner, the ONS chief economist, attributed the drop in inflation to stable food prices this year compared to a significant increase last year.
Finance minister Jeremy Hunt expressed satisfaction with the news, stating that inflation is expected to reach the two-percent target soon.
He highlighted the positive economic outlook and urged caution against increasing borrowing or cutting public service funding in the pursuit of tax cuts, especially ahead of the upcoming general election.
Inflation stood at 3.4 percent last month, the lowest since September 2021, following a peak of 4.0 percent in January, according to the Office for National Statistics.
The consensus was for a 3.5 percent increase in consumer prices in February, as per a Bloomberg survey.Despite this decline, inflation remains well above the Bank of England‘s two-percent target.
This has sparked speculation about a possible interest rate cut by the Bank of England later this year.
The Bank of England is anticipated to maintain its main interest rate in the upcoming announcement on Thursday after the latest monetary policy meeting.
However, analysts are foreseeing a potential rate cut as early as June.
Grant Fitzner, the ONS chief economist, attributed the drop in inflation to stable food prices this year compared to a significant increase last year.
Finance minister Jeremy Hunt expressed satisfaction with the news, stating that inflation is expected to reach the two-percent target soon.
He highlighted the positive economic outlook and urged caution against increasing borrowing or cutting public service funding in the pursuit of tax cuts, especially ahead of the upcoming general election.
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