UK Inflation Falls to 2.3% in April
The UK’s annual inflation rate dropped to 2.3% in April, the lowest since July 2021, as per the Office for National Statistics (ONS). This marks a decrease from the 3.2% recorded in March.
Prime Minister Rishi Sunak noted this downturn as a "major milestone," declaring inflation is "back to normal." Inflation reflects the rising prices of goods and services, and the recent figure implies that prices are increasing at a slower rate.
The inflation rate affects various sectors differently. For instance, gas and electricity costs decreased by 27% compared to the previous year. Food prices saw some reductions, with items like fish, milk, cheese, and eggs becoming cheaper, while others like meat and bread increased at a slower pace.
The decline in inflation has brought discussions about potential interest rate cuts by the Bank of England. Currently, interest rates are at 5.25%. The latest inflation data suggests that a rate cut in June is unlikely, though predictions lean towards a possible cut in August.
Key factors like services inflation, which includes hospitality, culture, and education, are critical indicators for future monetary policy decisions by the Bank of England.