Moneyfarm CIO: The downturn in inflation is hard to change the financial pressure, tariffs hinder the process of UK central bank's interest rate cuts
Richard Flax, Chief Investment Officer at Moneyfarm, stated in a report that data showing a moderate decline in the UK's inflation rate for February is unlikely to alleviate financial pressure.
The overall annual inflation rate for February in the UK fell from 3.0% in January to 2.8%, slightly more than expected.
Flax said that the UK Chancellor might take some comfort from the continued easing of inflation, but this moderate drop is almost no help in reducing financial pressure.
He also stated that tariff risks could increase import costs, driving up the inflation rate and thereby limiting the Bank of England's room to cut interest rates.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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