Inflation & Prices
Stronger-Than-Expected UK Inflation Tempers Rate Cut Bets
- Core and services inflation ease at a slower pace than hoped
- Investors have scaled back expectations for sharp rate cuts
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UK inflation slowed less than expected last month as fuel prices crept higher, prompting traders to further unwind bets on how many interest rate cuts the Bank of England will deliver this year.
Consumer prices rose 3.2% in March compared with a year earlier, down from 3.4% in February, the Office for National Statistics said Wednesday. While it was the lowest since September 2021, it was above the 3.1% that the BOE and private-sector economists had expected.