THE case for further inflation rate cuts are “all the more urgent” in the wake of US President Donald Trump’s tariff hikes, the TUC warned yesterday.

New figures from the Office for National Statistics show that Consumer Prices Index (CPI) inflation eased to 2.6 per cent in March, down from 2.8 per cent in February.

The reading is expected to heighten calls for a reduction in interest rates from their current rate of 4.5 per cent at the Bank of England’s upcoming rate-setting meeting in May.

This month, Trump sparked economic uncertainty by threatening a new wave of tariffs, which has seen duties on Chinese goods raised to as high as 145 per cent, with a new threat of that rising to 245 per cent.

TUC general secretary Paul Nowak said: “With an increasingly unpredictable global economy, the case for further interest rate cuts has become all the more urgent.  

“Lower rates will mean more money in working people’s pockets to spend on our high streets, and more money for firms so that they feel confident to invest. 

“The Bank needs to act at the start of May to ease the pressures on households and firms and support growth.”