Inflation falls to 2.8% but is expected to rise from here
Summary
The UK’s inflation rate fell to 2.8% in April, mainly because of lower energy bills. However, experts expect inflation to rise to around 4% later this year due to ongoing effects from the conflict in the Middle East.Key Facts
- Inflation dropped from 3.3% in March to 2.8% in April in the UK.
- Lower gas and electricity bills helped bring inflation down.
- Energy prices fell partly because of government support and lower wholesale prices before the Iran conflict.
- Rising fuel prices from the Iran war are pushing inflation higher again, with petrol prices reaching their highest since late 2022.
- Analysts predict inflation could reach about 4% by the end of the year due to global tensions.
- UK Chancellor Rachel Reeves plans to introduce more help for households facing higher energy costs.
- The Bank of England aims to keep inflation at 2% and may adjust interest rates to control price rises.
- Food inflation fell to 3% in April, partly due to slower price increases for chocolate and meat.
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