Inflation data offers interest rate cut hope

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THE pressure on the UK economy may be softening offering the Bank of England the flexibility to cut rates further, inflation data from the Office for National Statistics (ONS) suggests.

The UK's rate of consumer price inflation (CPI) for March remained unchanged at a nine-month high of 2.5pc in March. The rate of retail price inflation (RPI), meanwhile, eased to 3.8pc, from 4.1pc in February. With the volatile effects of oil and food prices stripped out, core inflation remained unchanged at just 1.2pc; the lowest level since August 2006. And, despite producer price inflation hitting a 17-year high in March of 6.2pc, analysts said the latest consumer price indices would allow the Bank of England scope for further interest rate cuts, in the coming months. Charles Dav...

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