United Kingdom: Inflation overshoots expectations in April
Inflation came in at 8.7% in April, down from March’s 10.1%. April’s result marked the lowest inflation rate since March 2022, but was far higher than market expectations of 8.2%. The reading was primarily driven by far lower inflation for housing and fuels, as last April’s increase in Ofgem’s energy price cap dropped out of the base of comparison.
Annual average inflation was unchanged at March’s 10.0% in April. Meanwhile, core inflation rose to 6.8% in April, from the previous month’s 6.2%.
Finally, consumer prices increased 1.21% from the previous month in April, picking up from March’s 0.76% rise. April’s uptick was the highest reading since October 2022.