The inflation of the United Kingdom drops to 2.8% increasing for Rachel Reeves before the Spring Declaration | Inflation

The inflation of the United Kingdom returned to 2.8%, providing some positive news for Rachel Reeves Before making his spring declaration.

The office for national statistics stated that the annual inflation measured by the consumer prices index cooled last month, taking up a downward trajectory after a increase to 3% in January from 2.5% to December.

The economists of the city had foreseen a modest drop at 2.9%, indicating that the prices continue to rise on an annual basis, although at a slower pace.

Grant Fitzner, the head of economist ons, said: “The prices of clothing, in particular for women’s clothes, were the largest pilot for the fall of this month. This was only partially compensated by small increases, for example, by alcoholic beverages”.

The figures were published only a few hours before the Chancellor’s speech to the Municipalities, in which Reeves should present gloomy forecasts for the economy and public finances from the office for budgetary responsibility.

The British economy has approached stagnation in recent months since families remain under pressure from high prices and high loan costs. The trust of business and consumers also decreased abruptly between the concerns about the impact of government taxes and the commercial wars of Donald Trump.

Inflation is expected to rise again in the midst of an increase in wholesale and climbing energy costs on food prices, in a renewed narrow for families. The bank warned that inflation could reach a new peak of about 3.7% by the end of the year.

Families are prepared for a strong increase in Council taxes, public services and other invoices since April. The company leaders are also warning that the increase in the autumn budget of Reeves in the national insurance contributions of the employer, who will have to take effect from next week, will force companies to cut jobs and increase prices.

“The slowdown of February is a false dawn as significant increases in short -term prices are already cooked, with the jump of next month in energy bills and the national insurance that will probably push dangerously close to 4% before rather than after”, said Suren Thiru, economic director of the Institute of Accounting Institute in England and Wales.

Paul Dales, chief economist of the United Kingdom in the consultancy capital EconomyHe said that inflation could return to 2.5% in March, but that a monthly increase of 6.4% of the prices of utilities and a monthly leap of 26% in water bills would increase it over 3% in April.

The higher inflation is expected to limit the bank’s ability to reduce interest rates and is reflected in greater government loan costs on the financial markets in headache for the chancellor.

The last instantaneous showed the basic inflation – which excludes food and energy and measures below prices on prices, was 3.5% in February, decreasing compared to 3.7% per month before. The inflation in the service sector, which is carefully observed by the bank, remained unchanged at 5%.

Threadneedle Street has said that it will require a “gradual and attentive” approach to cut interest rates. After three reductions in the last year, the investors of the city include only two cuts in the rates of a quarter this year, to 4%.

Darren Jones, the chief secretary of the treasure, said that the government focused on the “supply of economic stability” to guarantee people’s finances. “Our number one mission is to start growth to increase life standards for workers, that’s why we are protecting the workers’ paychecks from higher taxes”.