UK Inflation falls more than expected in February

UK CPI dropped to 2.8% in February, the lowest since 2021, raising expectations for rate cuts later this year. This shift could benefit interest-rate sensitive sectors like real estate, utilities, and consumer discretionary, which tend to perform well as borrowing costs fall. At the same time, inflation-resilient sectors such as energy, commodities, and healthcare remain important as core price pressures and energy volatility persist. The pound fell on the news with the FTSE 100 rallying.