June interest rate cut looks unlikely as smaller fall in inflation 'puts spanner in the works'

Hopes of a June interest rate cut from the Bank of England were rapidly fading today after a smaller than expected fall in the rate of inflation “put a spanner in the works”.

The headline measure, the Consumer Prices Index (CPI), dropped from 3.4% to 3.2% in March compared with a consensus forecast of 3.1%. Slower food inflation of 4% was the main reason behind the fall.