UK inflation falls below 10% for first time since August

UK inflation data paints a picture of the UK economy.

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LONDON – British inflation fell sharply in April as energy prices retreated and the impact of Russia’s invasion of Ukraine began to fade from annual consumer price comparisons.

Headline CPI inflation was 8.7 percent, the ONS said on Wednesday, down from 10.1 percent in March but higher than the 8.2 percent consensus forecast in a Reuters poll of economists.

The ONS said in its report: “Electricity and gas prices contributed 1.42 percentage points to the fall in annual inflation in April, as the increase in April last year disappeared from the annual comparison, but this part still contributed to annual inflation. 1.01 percentage points.”

“Food and non-alcoholic beverage prices continued to increase in April, leading to high annual inflation, however, the annual food and non-alcoholic beverage inflation rate fell from 19.2% in March 2023 to 19.1% in March 2023. One year to April 2023.”

On a monthly basis, consumer prices rose 1.2%, above the consensus estimate of 0.8%.

The consumer price index, which includes owner-occupier housing costs (CPIH), rose 7.8% in the 12 months to April 2023, down from 8.9% in March, while core CPI (which excludes the volatile energy , food, alcohol and tobacco prices) rose 6.8%, up from 6.2% in March, which will affect the Bank of England.

Inflation has been stubbornly high in Britain even as the economy beats recession expectations, prompting bank of england arrive 12th consecutive rate hike to 4.5% At the last meeting earlier this month.

Economists widely expect further rate hikes at the next meeting, as inflation in Britain remains stickier than in comparable major economies, while the labor market has remained tight, Gov. Andrew Bailey warns of wage price spiral.

On Tuesday, Bailey acknowledged to lawmakers that “very important lessons can be learned” from the central bank’s failure to predict the intensity and persistence of inflation.

As British households continue to grapple with high food and energy bills, workers from all walks of life have Large-scale strike action has been launched in recent months In disputes over pay and working conditions.

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