UK ‘nearly there’ on inflation

UK 'nearly there' on inflation

RISHI SUNAK: Hailed lower inflation as a ‘major moment’ Photo credit: 10 Downing Street/Simon Walker

Inflation fell to 2.3 per cent in April, down from 3.2 per cent in March and the UK’s lowest since July 2021.

“It is a major moment for the economy with inflation back to normal,” PM Rishi Sunak declared on May 22 although the April figure was above the City’s predicted 2.1 per cent.

Gas and electricity prices, respectively 38 per cent and 21 per cent lower in April, were mainly responsible for the dip in inflation, owing to a lower price cap fixing the maximum price charged for each unit.

Falling fertiliser prices and competition between supermarkets on own-brand items, meant milk, butter, poultry and fish were cheaper in April 2024 than they were a year earlier and helped to chip away at inflation.

In contrast, mobile phone bills and rents continued to rise and April’s figure has topped the Bank of England’s 2 per cent target.

Meanwhile, some City sources were “pessimistic” about a cut, but others did not rule out a  reduction in August.

The Bank’s governor Andrew Bailey pointed out that the inflation crisis was at an end while the deputy governor Ben Broadbent, has also hinted at “possible” bank rate cut later this summer.

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Written by

Linda Hall

Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.

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