U.K. Inflation Drops More Than Expected to Slowest in a Year
- Decline in rate led by women’s clothing, tobacco and alcohol
- Bank of England may need fewer rate increases than thought
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U.K. inflation slowed to the weakest in a year in March, raising questions about how quickly the Bank of England will increase interest rates.
Consumer prices rose 2.5 percent from a year earlier, down from 2.7 percent in February, the Office for National Statistics said on Wednesday. That’s less than economists estimated and below the BOE’s most recent forecast of 2.8 percent for the same period. Core inflation cooled to 2.3 percent, also the lowest rate in a year.