UK Inflation Falls to 2.3% in April, Core Inflation at 3.9%, Sunak Hails Economic Milestone

May 22, 2024, 06:06 AM

UK inflation has fallen to 2.3% in April, down from 3.2% in March, marking the lowest level in nearly three years. This decline is largely attributed to falling energy prices, particularly electricity and gas. Despite the decrease, core inflation, which excludes food, alcohol, tobacco, and energy, remains relatively high at 3.9%. Services inflation also came in higher than expected at 5.9%. The Bank of England had expected a slightly lower headline inflation rate of 2.1%, leading to tempered expectations for an imminent rate cut. Prime Minister Rishi Sunak hailed the drop as a major moment for the economy, stating, 'Today marks a major moment for the economy, with inflation back to normal. This is proof that the plan is working and that the difficult decisions we have taken are paying off.' However, some analysts caution that the higher-than-expected core inflation could delay interest rate cuts. The fall in inflation has raised hopes for economic recovery, with wages and pensions growing faster than inflation for the past six months.