Inflation in the UK decreases more than expected to 2.6 % in March

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Inflation in the UK fell more than expected to reach 2.6 percent in March, strengthening the case for England Bank to reduce interest rates next month as it is preparing for the economic impact of US President Donald Trump’s styles.

The annual increase in consumer prices, which was informed by the National Statistics Office on Wednesday, was less than 2.7 percent of expectations by economists in a Reuters poll and fell from 2.8 percent in February.

The numbers showed that the biggest factors in the decline were the lowest prices for gasoline, games, games and hobbies – especially computer games.

But the inflation, a major measure of the basic price pressures of price clips, has slowed more than expected to 4.7 percent in March from 5 percent in February. It also reduced food inflation, from 3.3 percent to 3 percent.

“For one time, inflation in the UK decreased for the right causes,” said Thomas Weldic, the European chief economist in Tr Ro Price, who said the most enlarged inflation in May.

After issuing the data, the traders have strengthened their bets on at least three points a quarter of points from the Bank of England by the end of the year, according to the levels involved in the bombing markets, with an opportunity for the first time at the May meeting by 85 percent.

The return on Gilts decreased for two years, which move with interest rate forecasts, 0.06 degrees Celsius to 3.91 percent.

The pound initially decreased against the dollar after the data before recovering the ground, an increase of 0.3 percent at $ 1.328 a day.

Wielaadek added that the most enlarged inflation data and fears of trade opened the door to “at least four” price cuts this year.

Rachel Reeves, Chancellor, said that two months of low inflation, in addition to growth in the gross domestic product and real wages, were “encouraged signs” – refuted the claims made by the shadow consultant.

But economists have said that a decline will not prevent the recovery of inflation in April, which reflects sharp increases in the bills of organized families, and that long -term expectations depend on how the global trade policy has evolved.

“The truth is that inflation expectations in the UK depend on President Trump’s identification policies,” said James Smith, director of research at the decision -making center at the decision.

the Bi The balance between the risks of the weak job market has been achieved against the continuous pressures for the growth of strong wages and the highest household bills.

The Central Bank’s Monetary Policy Committee said last month that it will adhere to a “accurate and fixed” approach to reduce borrowing costs after maintaining interest rates by 4.5 percent.

But the impact of the World Trade War will now dominate the bank’s thinking.

The United Kingdom was exposed by Trump, including 10 percent tariff By 25 percent, the White House imposed on imported cars and steel. But economists say that the slow global growth and unexpected impacts of trading will have a greater impact on the British economy.

Claire Lombardie, a deputy governor of the Bank of England, said last week that the definitions are likely to disturb economic activity, but their impact on inflation will be difficult to predict.

Smith said: “The uncertainty in global trade may reduce our prices, as oil has already decreased more than 10 percent since the beginning of April – but the World Trade War will create renewed inflation.”

Ruth Gregory, a UK’s chief economist in the economic consulting of capitalism, said the shock of the tariff “has given a balance of risk to low inflation and a faster decrease in interest rates.”