Market News
UK inflation cools more than expected in February but fresh climb expected - REUTERS
By Andy Bruce and William Schomberg
Summary
- UK CPI +2.8% in Feb vs Reuters poll +2.9%
- Fall in clothing prices helps bring down inflation
- Sterling and short-term bond yields fall
- Some economists expect May rate cut by Bank of England
- Others say central bank will want more time
LONDON, March 26 (Reuters) - British inflation slowed more than expected in February, bringing some relief to consumers ahead of a likely new pick-up in price growth and to finance minister Rachel Reeves before her budget update speech on Wednesday.
Consumer prices rose by 2.8% in annual terms in February after a 3.0% increase in January, the Office for National Statistics said, as clothing and footwear prices fell for the first time in more than three years.
