UK inflation boosts rate cut hopes

UK inflation unexpectedly cooled in February, strengthening the case for the Bank of England to cut interest rates again in May and providing a boost for Chancellor of the Exchequer Rachel Reeves ahead of a key economic statement yesterday.

- TOM REES, PHILIP ALDRICK

Consumer prices climbed 2.8% in Febru-ary from a year earlier, slowing from 3% the previous month, the Office for National Sta-tistics said. It was below the 3% economists were expecting on average and in line with the 2.8% predicted by the BoE last month. Clothing prices were the biggest driver of the slowdown, the ONS said.