London: Price rises in the UK eased by more than anticipated in February, official figures showed Wednesday, raising expectations that the Bank of England may start cutting interest rates in the next few months.
The Office for National Statistics said inflation, as measured by the consumer price index, fell to 3.4 per cent, its lowest level since September 2021, from 4 per cent in January. The agency said easing food price inflation was largely behind the fall.
The decrease was bigger than anticipated. Analysts had expected a decline to 3.6 per cent. Inflation is still running higher than the Bank of England’s target of 2 per cent but the direction of the move is clear. Inflation hit a high above 11 per cent at the end of 2022 in the wake of Russia’s invasion of Ukraine, which led to sharp increases in energy costs.
