UK interest rate cut hopes fade after inflation falls by less than expected – as it happened

City investors trim their forecasts for rate cuts this year, after inflation falls by less than expected to 3.2%

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The UK's annual inflation rate fell in March for a second consecutive month, dropping to 3.2% - the lowest level since September 2021 - easing pressure on households amid the cost of living crisis.

Figures from the Office for National Statistics (ONS) show inflation as measured by the consumer prices index continued to fall from 3.4% in February. City economists had forecast a reading of 3.1%.