The rate of inflation in the UK fell to 2.3 per cent in April, down form 3.2 per cent the month before, still above the Bank of England’s two per cent target, but the lowest reading since July 2021, according to the Office for National Statistics (ONS).
The figure was above economists’ expectations of 2.1 per cent.
On a monthly basis, the Consumer Prices Index (CPI) rose by 0.3 per cent in April, compared with a rise of 1.2 per cent in the same month in 2023.
“Today marks a major moment for the economy, with inflation back to normal,” prime minister, Rishi Sunak said
“This is proof that the plan is working and that the difficult decisions we have taken are paying off.
“Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.”
The opposition Labour Party’s shadow chancellor, Rachel Reeves, said the fall in the rate of inflation was nothing to be complacent about.
“Inflation has fallen, but now is not the time for Conservative ministers to be popping champagne corks and taking a victory lap,” she commented.
“After 14 years of Conservative chaos families are worse off. Prices in the shops have soared, mortgage bills have risen and taxes are at a 70-year high.
“Rishi Sunak is now putting family finances at risk again with his £46 billion unfunded policy to abolish national insurance that will mean higher borrowing, higher taxes or the end of the state pension as we know it.”
The largest contributors to the downward pressure on inflation came from falling gas and electricity prices, following a 12 per cent reduction in the energy price cap set by the market regulator Ofgem.
Meanwhile, rising prices of motor fuels, which were falling a year ago, provided the biggest upward pressure.
This is a developing story.
Updated: May 22, 2024, 6:26 AM