UK inflation falls by more than expected to 2.6%
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The inflation rate has fallen more than expected. Here’s why
- UK inflation fell to 2.6 per cent in March, down from 2.8 per cent in February, exceeding economists' predictions.
- Falling fuel prices and stable food costs contributed to the decrease, offset slightly by rising clothing prices.
- While this marks the second consecutive month of slowing inflation, experts predict a potential surge in April due to energy price increases and tax rises.
- The Bank of England is likely to cut interest rates in May, but this may not immediately translate to lower mortgage rates as lenders consider future rate predictions.
- The falling inflation rate is attributed to various factors, including weaker inflation across the board, lower oil prices impacting fuel costs, and a slight weakening in food price inflation.