Inflation in the United Kingdom has dropped more than expected at 2.8% in February, in a boost to Chancellor Rachel Reeves when she is preparing to deliver a spring declaration to high issues.
On Wednesday, the annual increase in consumer prices, declared by the Office for National Statistics, was lower than the forecasts of 2.9% by the economists interviewed by Reuters and the 3% recorded in January.
The drop was caused by a drop in clothing prices, which fell 0.6% in the 12 months to February.
Inflation of services, a key measurement of underlying prices for prices for prices, 5% held in February, according to the ONS. Economists had predicted a 4.9%drop.
Persistent pricing pressures prompted the Bank of England to adopt a “progressive” approach to reduce interest rates despite dull growth. Last week, he held rates at 4.5%.
Joe Nelis, Economic Advisor at MHA, the accounting firm, said that if the drop in the inflation of major securities was “a welcome surprise for the government”, it was unlikely to change the progressive approach of the BOE to reduce rates.
After the publication of ONS data, the book weakened 0.3% at $ 1.290 while the yield on the golden price at two years fell from 0.04 percentage points to 4.26%.
Traders have also increased their bets according to which the BOE would provide two additional decreases of prices in quarter this year from 60% to 75%, depending on the levels involved by the Swaps market.
Inflation figures occur while Reeves should describe more than 10 billion pounds of sterling of spending discounts later in the day in order to repair a hole in public finances caused by anemic growth and higher borrowing costs.
