POST Online Media Lite Edition



 

UK inflation unexpectedly falls to 11-month low

Staff Writer |
Inflation fell unexpectedly in April, casting doubt on when the Bank of England will next decide to increase interest rates.

Article continues below




Annual consumer price inflation eased to 2.4% from 2.5%, official figures showed. The April figure was the weakest since March 2017 and lower than economists' average forecast for inflation to hold steady at 2.5%.

The Office for National Statistics said air fares were the biggest contributor to April's fall due to the timing of Easter. That decline was partly offset by rising petrol prices.

Soft drinks had their biggest rise ever for the time of year, caused by the introduction of the sugar tax. But the ONS said many retailers still had not passed the cost on to shoppers.

Lower-than-forecast inflation gives the Bank of England further food for thought after its monetary policy committee held off on increasing interest rates in May.


What to read next

UK inflation accelerates in May to highest level in 4 years
Mexico annual inflation ticks up in May
French inflation slowed unexpectedly, HICP fell to 1.4%