Reported 5 months ago
UK inflation fell to 2.3% in April, nearing the Bank of England's target of 2%, driven by lower energy costs. While the drop from 3.2% in March was greater than expected, economists are cautious about a potential interest rate cut in June due to lingering price pressures, especially in core inflation and the service sector. Financial markets have revised their expectations for a rate cut in August, with services inflation showing more resistance than anticipated. Despite the decline in inflation, policymakers are hesitant to commit to an early rate cut due to strong economic growth and elevated wage growth.
Source: YAHOO