Customer Customers and Visitors at Oxford Street 28. August 2024 in London, the United Kingdom.
Mike Kemp | In pictures | Getty Images
Inflation rate in the UK in February has fallen slightly to 2.8%, coming just below the expectation of analysts, According to the information the office published for national statistics (ONS) on Wednesday.
The economists surveyed by Reuters envisioned that consumer prices index will reach 2.9% in twelve months until February.
The inflation rate suddenly increased to 3% in January, after falling to 2.5% lower than expected in December.
The last data will be the food to think for the Bank of England, which left interest rates at 4.5% at a monetary policy meeting last weekWhile the economy in the UK is struggling with the uncertainty of global trade policies, possible tariffs, an intended temporary increase in inflation and the upbringing of stagnation at home.
In that statement, the central bank said that “the uncertainty of global trade policy intensified, and the United States gave a series of tariff announcements, to which some governments responded.”
“Other geopolitical insecurity also increased, and indicators of the volatility of the financial market have increased globally,” he added.
Boe already had Warned in February that the inflation is expected to temporarily increase to 3.7% In the third quarter this year, because energy costs are accelerated. He also halved his growth forecast 2025 for the UK to 0.75%.
Inflation information on the British Government will carefully observe while finance minister Rachel Reeves is preparing for later on Wednesday to update the legislators about their consumption and tax plans, as well as the economic prospect of the nation.
Reeves is expected to announce a reduction in consumption of billions of pounds as a way to close the budget deficiency caused by an increase in borrowing costs since its first fiscal plan was published last fall.
The Minister of Finance has already vowed to adhere to its self-imposed “fiscal rules” to ensure that daily consumption is fulfilled by tax revenue and that public debt falls as a proportion of economic production by 2029-30.
Reeves’ Spring statement It should be presented in parliament around 12.30 in London, and will be delivered together with the latest economic forecasts from the Budget Liability Office (OB), an independent guardian of public finances in the country.
Oba is Supposedly expected In order to reduce the UK growth forecasts by 2025 and halved their previous estimate of 2%, with a lower production of pressing upwards on the government borrowing requirements and forcing Reeves to reduce public consumption by around 10 billion pounds (12.96 billion USD).
