It went down to 2.3% in April, from 3.2% in March
UK inflation fell to the lowest level in nearly three years in April as energy prices continued to cool, according to official figures.
Consumer Prices Index (CPI) inflation slowed to 2.3% in April, down from 3.2% in March, according to the Office for National Statistics (ONS).
It marks the lowest level since July 2021 when inflation was recorded at 2% – the Bank of England’s target level.
This means that prices are still rising across the country, but at a much slower rate than in recent years when households and businesses were being squeezed during the peak of the cost-of-living crisis.
Lower gas and electricity prices helped bring down the overall inflation figure in April.
Food and drink price rises also slowed for the 13th month in a row to 2.9% in April, from 4% in March, and the lowest level since November 2021.
However, services inflation, a critical indicator for Bank of England policymakers, dipped slightly from 6% in March to 5.9% in April, coming in ahead of the 5.4% rate that some economists had been predicting.
This was driven by more volatile aspects of the sector, such as hotels and live music.
Rishi Sunak declared inflation was “back to normal” in response to the latest figures, and that “brighter days are ahead”.
The Prime Minister said: “Today marks a major moment for the economy, with inflation back to normal.
“This is proof that the plan is working and that the difficult decisions we have taken are paying off.
“Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.”
Grant Fitzner, the ONS’s chief economist, said: “There was another large fall in annual inflation led by lower electricity and gas prices, due to the reduction in the Ofgem energy price cap.
“Tobacco prices also helped pull down the rate, with no duty changes announced in the budget.
“Meanwhile, food price inflation saw further falls over the year. These falls were partially offset by a small uptick in petrol prices.”
Published: by Radio NewsHub
