The rate of inflation slowed sharply to an annual rate of 3.4% in February, according to official figures charting a big contribution from food costs. Data from the Office for National Statistics showed an easing in the headline measure from the 4% rate recorded the previous month to a level last seen almost two-and-a-half years ago.
Regular pay rises, according to separate ONS data last week, were still running above 6% - a level that could help drive demand in the flatlining economy and force up the pace of price increases. Brent crude oil costs hit levels not seen since October last year earlier this week at $87 per barrel. Interest rate cuts would help put more money back in people's pockets over time, boosting the economy which officially entered recession in the second half of last year.