UK inflation falls to the lowest level in over a year but food prices remain elevated
The Office for National Statistics said Wednesday that the consumer price index dropped to 8.7 per cent in the year to April from 10.1 per cent in March, largely because last year's energy spike in the wake of the invasion dropped out of the annual comparison.
Official figures show that inflation in the UK has fallen to its lowest level since the immediate aftermath of Russia's invasion of Ukraine, which caused energy and food costs to surge.
The Office for National Statistics said Wednesday that the consumer price index dropped to 8.7 per cent in the year to April from 10.1 per cent in March, largely because last year's energy spike in the wake of the invasion dropped out of the annual comparison. The fall took inflation to its lowest level since March 2022, a month after the war began.
Though welcome, the fall wasn't as big as anticipated. The consensus in financial markets was that it would ease back further to 8.3 per cent.
I promised to halve inflation. There's still work to do, but today’s news shows that we're making progress pic.twitter.com/eb4TuhQqW0
— Rishi Sunak (@RishiSunak) May 24, 2023
The main reason why inflation is consistently running higher than anticipated is that food prices remain elevated.
"The rate of inflation fell notably as the large energy price rises seen last year were not repeated this April, but was offset partially by increases in the cost of second-hand cars and cigarettes," the statistics agency's chief economist Grant Fitzner said.
"However, prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs," he added.
Also Read: India's economic growth will be close to 6.5% in FY23-24: RBI Governor Shaktikanta Das
Also Read: Hindalco Industries reports 37% YoY drop in Q4 PAT, announces 300% dividend for FY23
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Tata Power Q4 Results Preview: Tata group electricity generator likely to clock 22% PAT jump, 193 bps margin improvement
Gold and Silver rate today (May 7, 2024): Precious metals subdued; yellow metal above Rs 71,300; white metal above Rs 82,850
5 investment schemes that provide monthly pension to senior citizens fixed deposit fds savings scss guaranteed return atal pension yojana post office monthly income swps mutual fund
07:39 PM IST