1021 GMT - The latest U.K. data suggest underlying prices pressures aren't easing, Berenberg economist Andrew Wishart says in a note. Headline inflation ticked down to 2.8% in February from 3.0%, but services inflation held at 5.0%. Much of February's decline came from a drop in clothing prices, which was likely from temporary discounts. Elsewhere, including for food and energy, inflation remained steady. This could mean the Bank of England "will stop lowering interest rates earlier than most other forecasters expect," Wishart says. He expects headline inflation could climb as high as 4.1% in the third quarter, above the BOE's forecast of 3.7%, as falls in energy prices stop dragging on the headline rate. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

March 26, 2025 06:21 ET (10:21 GMT)

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