The British Office for National Statistics (ONS) has announced the Consumer Price Index (CPI) data for April.
Accordingly, inflation in the country, which was 10.1 percent in March, fell to 8.7 percent in April. The expectation was that inflation would decrease to 8.2 percent in April. The Bank of England (BoE) had predicted April inflation to be 8.4 percent.
The relaxation in electricity and natural gas prices contributed to the fall in inflation by 1.42 points in April.
Continuing to rise in food prices in April, on the other hand, caused inflation to remain high. Food inflation slowed to a limited extent with 19.1 percent in April compared to 19.2 percent in March.
On the other hand, annual inflation, excluding energy and food prices, rose from 6.2 percent in March to 6.8 percent in April, reaching the highest level since March 1992.
Inflation in the UK reached its highest level in 41 years with 11.1 percent in October 2022.
BoE increased the interest rate from 4.25 percent to 4.50 percent on May 11 for the 12th time in a row, within the scope of its target to bring inflation to 2 percent.
Meanwhile, April’s inflation figure strengthened expectations that the BoE will have to raise interest rates again. Sterling gained value against the dollar and the euro following the release of April data.