Borrowing costs fall and pound rises after inflation surprise

Borrowing costs for the UK government have plunged, as an unexpected drop in inflation at home and in the US raised bets that central banks will cut interest rates in the months ahead.The yield - or interest rate - charged on key UK government debt dropped below 4.8%, retreating after last week's surge, when it had hit the highest level in 16 years. The moves followed new figures showing inflation cooled to 2.5%…