Inflation down in Britain, paving the way for a rate cut in 2024

British inflation slowed in February by slightly more than economists and the Bank of England expected, paving the way for interest rate cuts in the coming months.

According to Reuters, the National Statistics Office said on Wednesday that consumer prices rose by a slightly less than expected rate of 3.4% on an annual basis in February, slowing from 4.0% in January, the lowest inflation rate since September 2021.

A Reuters poll of economists’ opinions, and the Bank of England’s forecasts published last month, expected annual inflation to reach 3.5%.

The decline was driven by a decline in food and restaurant prices, while automobile fuel prices rose.

Core inflation, which excludes energy, food and tobacco prices, slowed to 4.5%, down from 5.1% in January. The Reuters poll indicated a reading of 4.6%.