Hopes rise for interest rate cut after inflation falls – but experts warn relief may be short-lived

A sharper-than-expected drop in inflation has fuelled speculation that the Bank of England could cut interest rates as early as May – but economists are warning the path ahead is far from clear.

Figures published on Wednesday showed UK inflation fell to 2.8 per cent in February, down from 3 per cent the month before and slightly below the 2.9 per cent forecast by analysts.