The Office for National Statistics (ONS) reported that inflation has reached a low not seen since July 2021.
It’s a significant decrease from a month ago; in the year to March, the figure was 3.2%. Prices are still rising, albeit at a slower pace than before.
However, it exceeds analysts’ and the Bank of England’s expectations. Economists polled by Reuters and the Bank expected 2.1%.
Since it is now nearer the 2% goal set by the Bank of England and other central banks globally, rate-setters may be persuaded to lower interest rates.
How it affects interest rates
The higher-than-expected inflation result, as well as core inflation, may discourage a rate cut next month or in August.
