The smaller-than-expected fall in CPI inflation from 3.4% in February to 3.2% in March (BoE and consensus 3.1%, CE 3.0%) and drop in the core rate from 4.5% to 4.2% (consensus and CE 4.1%) raises the risk that UK inflation will follow the trend in the US and soon stall. The chances of interest rates being cut for the first time in June are now a bit slimmer.
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