Inflation & Prices
Britain Set to Break From Eurozone With Cooling Core Inflation
- Banking worries expected to dominate BOE next rate decision
- UK is expected enjoy second straight drop for core inflation
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Britain’s underlying price pressures are set to diverge with those in the eurozone, with signs of cooling inflation intensifying the debate over whether the Bank of England should halt its cycle of interest rate increases.
Forecasters expect figures due Wednesday will show core inflation – which excludes volatile food and energy prices – easing to 5.7% in February from 5.8% the month before. A second straight cooling in the UK contrasts with the nations sharing the euro, where core inflation has picked up in each of the last three months.