From Investing.com: 2025-02-19 03:12:00

UK headline inflation has risen to 3%, higher than expected, mainly due to a 1% increase in food prices. However, service sector inflation, which is more relevant to the Bank of England, is showing signs of improvement. ‘Core services’ inflation is falling and expected to dip below 4% in the next few months. This trend could lead to a total of four rate cuts this year, with rates potentially falling to 3.25% in 2026. Despite challenges in food and energy prices, the overall outlook for services inflation is more positive, which could impact the Bank of England’s decision-making.



Read more at Investing.com: UK Services Inflation Lower Than Expected in Boost for Bank of England