From Morningstar:

Consumer price index (CPI) rose 3.4% in February, below forecasts and down from 4.0% in January, putting pressure on the Bank to ease monetary policy. Energy contributed to the inflation rise, while food and services saw a decrease.

Services sector inflation is slowing, with wage growth a concern for the Bank of England. Despite services inflation still at high levels, key indicators show positive trends, except for housing services which picked up. CPI rose by 0.6% monthly, and the retail price index (RPI) increased by 4.5% annually in February.

The better-than-expected inflation print raises speculation about rate cuts. Economists previously predicted rate hikes but are now anticipating cuts for the BoE, Federal Reserve, and ECB. Expert opinions vary on the impact of the latest data on UK rates, with some suggesting a need for further evidence of cooling price pressures before rate cuts are implemented.



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