UK inflation falls faster than forecast in April to 2.8%

Inflation in the United Kingdom fell more sharply than anticipated in April, dropping to its lowest level in over a year, but economists and officials warn the decline is likely temporary due to soaring global energy prices linked to conflict in the Middle East.

The Office for National Statistics reported the Consumer Prices Index rose by 2.8 percent in the year to April, down from 3.3 percent in March. The figure was lower than the 3.0 percent forecast by most economists and marked the largest monthly drop since September 2024.

A significant factor in the slowdown was a reduction in the household energy price cap implemented at the start of April, which lowered average dual-fuel bills. Officials attributed the lower cap to government support measures and lower global wholesale energy prices prior to recent geopolitical tensions. Smaller annual increases in water bills and vehicle excise duty, alongside falling prices for certain food items like chocolate and meat, also contributed to the easing inflation rate.

However, these decreases were partially offset by a sharp rise in motor fuel costs in April. Petrol and diesel prices reached their highest levels since late 2022, driven...