UK inflation falls by more than expected in February, triggering talk of lower interest rates

Price rises in the U.K. eased by more than anticipated in February, raising expectations that the Bank of England may start cutting interest rates in the next few months. The Office for National Statistics said Wednesday that inflation, as measured by the consumer price index, fell to 3.4%, its lowest level since September 2021, from 4% in January. The agency said easing food price inflation was largely behind the fall. Analysts had expected a decline to 3.6%. On Thursday, the Bank of England is expected to keep its main interest rate at a 16-year high of 5.25%. The meeting minutes will be assessed to see if there is talk of rate cuts.