UK inflation dips in March, potentially paving the way for another interest rate cut

London – Inflation in the second month due to low prices on the pump fell for the second month in March, official statistics showed Wednesday, which is a step that is likely to put pressure on the Bank of England to reduce interest rates next month.

National Statistics Office says that consumer prices have risen 2.6% in March, which has dropped from 2.5% in the previous month. Most economists predicted to go to a more modest reduction 2.7%, this fall was bigger than expected.

However, inflation remains above 2% of the bank of England’s target and higher domestic energy bills as well as higher taxes for the business and the possible impact of labor expenditures, which have increased by more than 3% in April, which can pass some expenses to the customers.

Nevertheless, most economists believe that the bank can lower its main interest rate from 5.5%, as the top spot of inflation is likely to be less than the previous thought, as US President Donald Trump’s tariff policies are likely to disappoint global growth and therefore prices. An impact on Trump’s customs plan is that the price of oil is low, which will have a downward impact on inflation.

“In May, a interest rate shows increasingly nailing and the way of more comfort in the second half of the year is becoming more clear,” said Luke Barthomiu, deputy prime economist of the resource management agency Aberdin.

The inflation has dropped from the level seen a few years ago, partially because central banks have dramatically increased the cost of taking Orrow from near zero during the Coronavirus epidemic. The prices then begin to draw, first as a result of the supply chain problem and then the full-scale aggression of Russia in Russia, which pushes the cost of energy.

Since the inflation rate has decreased from the versatile height, central banks, including the US Federal Reserve, have begun to reduce interest rates, though very few people think that the rates will return to the very low levels, which were after the global financial crisis of 20-21 and continued during this year during the this year.

The Bank of England has reduced its original rate to a quarter of one quarter of one percent of its original rate from last August to a quarter of a quarter, recently in February,