UK Inflation Decline Unlikely to Ease Fiscal Pressure, Says Moneyfarm CIO

According to Odaily, Richard Flax, Chief Investment Officer at Moneyfarm, has indicated in a report that the moderate decline in the UK's inflation rate for February is unlikely to alleviate fiscal pressure. The annual overall inflation rate in the UK decreased from 3.0% in January to 2.8% in February, slightly exceeding expectations. Flax noted that while the UK Chancellor might find some relief in the continued easing of inflation, the modest reduction does little to mitigate fiscal stress. He further mentioned that tariff risks could increase import costs, driving inflation higher and limiting the Bank of England's ability to cut interest rates.