The annual inflation rate dropped significantly in April, with prices rising more slowly than at any time in nearly three years. Inflation in the UK is currently lower than in the EU.
Despite this, the latest cost of living report from the Office for National Statistics was somewhat disappointing. A sharp decrease in April’s inflation rate was anticipated since last year’s energy price increases were not repeated.
However, the inflation rate stood at 2.3%, slightly above the expected 2.1% predicted by economists polled by Reuters. Some even hoped it would fall below the government’s 2% target.
The primary reason for the decline from 3.2% in March was the ongoing drop in household energy bills. According to the ONS, prices for electricity, gas, and other fuels were 27.1% lower this April compared to April 2023, marking the steepest decline since records began in 1989. Food price inflation also decreased from 4% to 2.8%.
These changes benefit poorer ho ...
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