London – Inflation in the United Kingdom fell in the second month in March to a large extent as a result of lower prices in the pump, the official figures showed on Wednesday, a measure that will probably accumulate pressure on the bank of England to reduce interest rates next month.
The National Statistics Office said consumer prices increased 2.6% in the year until March, below 2.8% of the previous month. The decrease was greater than expected, and most economists predict a decrease more modest than 2.7%.
However, inflation is maintained above the objective of the 2% bank of England and will rise to more than 3% in April due to the confluence of factors, including the highest national energy invoices, as well as the potential impact of the highest taxes and labor costs for companies, which will probably approve some costs to customers.
Even so, most economists think about The bank can reduce its main interest rate of 4.50%Since the peak in inflation is likely to be lower than previously thought, especially since the tariff policies of US President Donald Trump probably depress global growth and, therefore, prices. An impact of Trump’s tariff plans has been the lowest prices of oil, which will have a descending effect on inflation.
“An interest rate cut in May seems increasingly nailed, and the road to more decrease in the second half of the year is becoming clearer,” said Luke Bartholomew, deputy director of the ABERDEN asset management firm.
Inflation is very down the levels seen a couple of years ago, partly because central banks have dramatically Greater loan costs From near zero during the Coronavirus pandemic. Prices began to shoot, first as a result of supply chain problems and then due to The large -scale invasion of Russia of Ukrainethat pushed the highest energy costs.
As inflation rates have decreased from the maximum multiple, central banks, including United States Federal Reserve They have begun to reduce interest rates, although few, if anyone, economists think that rates will resort to super low levels that persisted in the years after the world financial crisis of 2008-2009 and during the pandemic.
The Bank of England has reduced its main rate of a maximum of 16 years of 5.25% in a percentage room three times since last August, more recently in February,
