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James Smith highlights that UK inflation figures released this morning show an unexpectedly large decrease in the rate of price increases.
According to Smith, despite ongoing global tensions, inflation is falling for now in the UK. He cautions that this latest drop may be the last for a while, suggesting that further reductions in inflation are unlikely in the near term.
In March, UK consumer price index inflation rose to 3.3 percent, up from 3.0 percent in February, with petrol prices as a major contributor, according to Smith's analysis. Last month, the Bank of England kept its policy rate steady at 3.75 percent, citing caution related to the Middle East conflict in Smith's report. These previous moves set the backdrop for today's data and outlook.