Inflation fall is ‘lull before the storm’ say analysts – Daily Business

Petrol prices have been rising following the Iran conflict

UK inflation has fallen to 2.8% in the year to April, though analysts say this could be the lull before the storm caused by the Iran conflict.

The latest figure from the Office for National Statistics (ONS) is a 0.5 percentage point fall from the 3.3% recorded in the 12 months to March.

It is a steeper drop than the 3% that analysts were expecting and is attributed to the energy price cap kicking in.

On 1 April the government’s cap on how much customers can be charged for each unit of gas and electricity fell by £117 a year, or 7%, from the previous cap which applied between January to March.

However, economists believe inflation will resume an upward trajectory as petrol and diesel prices have soared since the start of the Middle East conflict.

ONS data released on Tuesday showed wage growth slowed and unemployment rose in March. The figures are likely to reduce the likelihood of the Bank of England raising interest rates at its next meeting on 18 June.

… more follows

#Inflation #fall #lull #storm #analysts #Daily #Business