U.K. Inflation Slows to 2.8% in April as Energy Cap and Food Prices Pull Lower
Updated
Updated · CNBC · May 20
U.K. Inflation Slows to 2.8% in April as Energy Cap and Food Prices Pull Lower
21 articles · Updated · CNBC · May 20
2.8% inflation in April came in below Reuters' 3% forecast and down from 3.3% in March, according to preliminary ONS data.
Lower electricity and gas prices drove the slowdown after Ofgem's April 1 cap cut tariffs, helped by government bill support and lower wholesale energy costs before the Middle East conflict.
Smaller increases in water, sewage and road tax, plus cheaper food and package holidays, added to the pullback, though petrol, diesel, clothing and footwear prices rose.
Above 4% inflation is still possible later this year as Iran war-related energy costs feed through, while the Bank of England weighs that risk against weak growth and 5% unemployment ahead of its June 18 meeting.
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