Prospect of UK interest rate cut recedes as borrowing costs rise, while ECB says Middle East war could cause spike in inflation

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Shoppers faced a surprise jump in grocery inflation last month after four successive months of falls, as experts warned there was worse to come if there was prolonged war in the Middle East.

In a blow to households struggling with the cost of living, grocery price inflation rose to 4.3% in the four weeks to 22 February, after falling to 4% in January from 4.7% in December, according to the market research company Worldpanel by Numerator.