UK inflation drops, but currency concerns and potential budget changes loom ahead of Spring Statement.

UK inflation has decreased, offering some relief before the Spring Statement, though the pound has dipped 0.3% against the US dollar to $1.2908. Analysts expect weak growth forecasts from the Office for Budget Responsibility (OBR) could cause bond yields to rise, putting further pressure on the currency. Some economists warn the Spring Statement might introduce inflationary pressures due to a potentially expansionary budget.