Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills
Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed Wednesday. The drop was widely seen as a trigger for Prime Minister Rishi Sunak to call a general election for July 4.
The Office for National Statistics said inflation, as measured by the consumer prices index, fell to 2.3% in the year through April, down from 3.2% in March.
That is the lowest level since July 2021 when the global economy was still being held back by the coronavirus pandemic. The fall also takes inflation nearer to the Bank of England’s target rate of 2% and is likely to pile pressure on its nine-member rate-setting panel to cut interest rates from the current 16-year high of 5.25%.
The next rate meeting is on June 20 and many economists think the bank will cut borrowing costs. However, others think that ongoing concerns on the panel over the scale of price rises in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon, make an August reduction more likely.
