Moneyfarm CIO: Inflation decline cannot change fiscal pressure, tariffs hinder the Bank of England's rate cut process

ChainCatcher news, according to Jinshi Data, Moneyfarm's Chief Investment Officer Richard Flax stated in a report that the data showing a moderate decline in the UK's inflation rate for February is unlikely to alleviate fiscal pressure.

The UK's annual overall inflation rate for February fell from 3.0% in January to 2.8%, a decline slightly higher than expected.

Flax mentioned that the UK Chancellor of the Exchequer may feel some relief due to the continued easing of inflation, but this moderate decline does little to alleviate fiscal pressure.

He also stated that tariff risks could increase import costs, pushing inflation rates up and thereby limiting the Bank of England's room for interest rate cuts.