British Inflation Cools More Than Expected in February, Boosting Confidence for Interest Rate Cuts – London, UK

British inflation cooled in February by slightly more than economists and the Bank of England expected, according to data released by the Office for National Statistics. Consumer prices rose by a weaker-than-anticipated 3.4% in annual terms, the lowest rate of inflation since September 2021. Core inflation, excluding energy, food, and tobacco prices, also slowed to 4.5%. These figures could influence the Bank of England’s decision on interest rates, with speculations of potential rate cuts in the near future. Services inflation, a key indicator for the central bank, decreased to 6.1%, aligning with the Bank of England’s predictions. Finance minister Jeremy Hunt welcomed the data as a positive sign for economic conditions, while the opposition Labour Party criticized the Conservative government for high prices and reduced living standards. With an election on the horizon, economic factors like inflation are likely to play a significant role in shaping political debates and policies in the coming months.