UK CPI inflation dips to 3%
UK inflation figure was slightly lower than economists expected.
The UK’s consumer price index (CPI) measure of inflation fell from 3.5 per cent in March to 3 per cent in April, according to official statistics.
The Office for National Statistics (ONS) said the slightly lower than expected inflation came after Easter had a “significant impact” on prices, with air transport, off-sales of alcohol, clothing and sea transport the most significant drivers of the decrease.
Economists had been anticipating April inflation of 3.1 per cent on average.
The figure marks a return to falling levels of inflation for the UK, which in March saw inflation rise slightly from 3.4 per cent in February to 3.5 per cent. This came after inflation had fallen steadily in the previous months from highs of over 5 per cent late last year.
The UK’s retail prices index (RPI) measure of inflation held steady at 3.5 per cent, slightly down from 3.6 per cent in March, but higher than the forecast of 3.4 per cent.
Jason Conibear, director at forex specialists, Cambridge Mercantile Group, said: “That inflation has nudged down will be of great relief to the Bank of England but it’s a meagre ray of light in a darkening economic environment.
“Last week the Bank of England said inflation would be hitting target a lot later than expected, and there’s no doubt we can expect a bumpy ride on the way down.”