In March inflation in the UK falls up to 2.6%

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The UK inflation decreased more than expected by 2.6 percent in March, providing some help to the Bank of England because it is subject to economic impact of US President Donald Trump tariffs.

The annual increase in consumer prices, reported by the National Statistics Office on Wednesday, was below 2.7 percent forecast by economists in the Reuters survey and decreased with 2.8 percent in February.

The ONS noted that the biggest contribution to the reduction was the result of rest and culture, in particular, for games, toys and equipment for data processing, as well as from low gasoline prices.

Boe is faced with a delicate balancing because it fights with the worsening job market and the prospect of inflation at the end of this year, which is partially due to higher home accounts.

Last month, the Central Bank’s monetary policy Committee said it would follow a “careful” approach to reducing the borrowing costs after interest rates by 4.5 percent.

Inflation services, the key indicator of the pricing rate, slowed down more than expected, in March with 5 percent in February 5 percent. Economists predicted 4.8 percent.

BOE’s task was complicated by Trump’s trade war, and the UK suffered a 10 percent tariff.

Last week, Claire Lombardeli, the deputy governor in Boe, said the tariffs probably oppress economic activity, but that their influence on inflation would be more difficult to predict.

After the release of March figures, the pound was a little changed against the dollar, which was 0.3 percent of $ 1,327.

This is a developing story