Surprise inflation drop could mean cheaper mortgages for home owners by the summer
by Joe Middleton
Mar 20, 2024
3 minutes
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UK inflation has fallen back to 3.4 per cent, the lowest level in more than two and a half years, boosting hopes that the Bank of England could look to cut interest rates in the summer.
The larger-than-forecast decline is a significant boon for Rishi Sunak, who made reducing inflation one of his key economic pledges. Getting inflation down to 2 per cent is also a key target for the Bank.
The figures released by the Office for National Statistics (ONS) on Wednesday showed that inflation was 3.4 per cent in February, which is slightly lower than the 3.5 per cent predicted by economists.
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