UK inflation falls to 2.6%, increasing pressure on Bank to cut interest rates

Before Donald Trump’s tariff announcements, analysts had predicted that inflation would start rising from April onwards, peaking at about 4% over the summer. Photograph: Anna Watson/Alamy

UK inflation dropped to 2.6% in March, increasing the pressure on Bank of England policymakers to cut interest rates next month as Donald Trump’s tariff wars cast an uncertain outlook.

Prices growth was weak ahead of an expected rise in April as households begin to pay higher council tax and utility bills.