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How UK inflation can fall to 1.5% by May
Lower natural gas prices are catching the headlines, but UK inflation is actually set for a fairly broad-based decline over the coming months. But the market risks getting ahead of itself by pricing a May rate cut, especially if tax cuts are announced in March. 2% inflation is coming very soon Financial markets are fully pricing the first Bank of England rate cut in May. While that reflects a global shift in thinking among investors, it also shows mounting confidence that the UK inflation story is set to improve further. This Wednesday’s CPI release for December might be too early to see that, and we’re only ... (full story)