UK inflation slows to 3.4% in February with food costs easing

Published: 20 March 2024 at 09:10

In February, UK\'s inflation rate dropped to 3.4%, attributed to flat food prices compared to a significant rise last year. The Office for National Statistics reported a decrease from the previous 4% rate, mainly due to slower restaurant and cafe price increases. While fuel and rental costs rose, inflation is expected to dip below the Bank of England\'s 2% target soon. The Bank is likely to delay rate hikes despite inflation relief for borrowers, fearing a potential increase later in the year. Factors like wage growth, shipping disruptions, and global oil prices impact future inflation trends.

SOURCES

UK inflation falls by more than expected in February, triggering talk of lower interest rates

By PAN PYLAS

Food and eating out costs drive fall in inflation

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Rate of inflation eases to 3.4% in February, official figures show

Sky News