UK Inflation posted as expected at 3%, earlier today, the first decline in six months. Air fares have been the main contributor to the decline, as well as the dropping prices in toys and games. The Pound dropped slightly on the release, as the pressure on the Bank of England to put the figure back in line with the target begins to ease. The BOE are also predicting a slowdown in inflation this year, forecasting the figure to come back down to 2.4% by the end of 2018.
EU Council President, Donald Tusk, believes the UK could still reverse Brexit, if they had a change of heart. Speaking to the European Parliament, Tusk mentioned the EU’s ‘hearts are still open’ if Britain wishes to change its mind. Brexit talks are about to enter the next stage, which the EU have mentioned will be much tougher than the first, looking at the transition period. The EU have already issued a document on their demands for this period, which include allowing any EU citizens which arrive in the UK before 2020 to be able to remain under the current immigrations rules. Another demand requires the UK to pay for any new financial obligations that are undertaken by the EU during this transition period, despite the UK not having a say in the decision.