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The US economy grew by less than forecast in the first three months of this year but inflation gathered pace, which could delay an interest rate cut.

Official figures revealed the economy expanded at an annualised rate of 1.6%, far below expectations and the growth seen in the final months of 2023.

Meanwhile, inflation, which measures the pace of price rises, has increased.

(Picture: Retail sales drop in Britain, Huddersfield, United Kingdom - 21 Oct 2022. Picture credit: EPA-EFE/REX/Shutterstock)