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LONDON: British consumer prices rose by a slightly weaker-than-expected 3.4% in annual terms in February, slowing from a 4.0% increase in January, and the lowest rate of inflation since September 2021, the Office for National Statistics said on Wednesday.

A Reuters poll of economists had pointed to an annual rate of 3.5%.

Core inflation, which excludes energy, food and tobacco prices, also slowed to 4.5%, down from 5.1% in January.

UK inflation rate unexpectedly holds at 6.7% in September

The Reuters poll had pointed to a reading of 4.6%.

The figures were published a day before the Bank of England announces its latest decision on interest rates.

Services inflation, which the BoE watches closely, slowed to 6.1% from 6.5% in January, the ONS said.

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