Markets expect sharp fall in inflation for February

Inflation in the UK is expected to have fallen sharply in February when the latest data is published on Wednesday.

Forecasts from economists and the Bank of England suggest consumer price inflation declined from 4 per cent to 3.5 per cent last month, on the back of slowing car, food and energy prices. A measure of core inflation, which strips out food and energy, is expected to ease from 5.1 per cent to 4.5 per cent, according to forecasts from Pantheon Macroeconomics.

Rate-setters at the Bank of England have said they need to see more evidence of disinflation across the economy before they can start cutting interest rates for the first time in four years. The monetary policy committee will be paying particular attention to