UK Inflation Drops in April

Falling petrol prices pushed down UK inflation more than expected last month, bringing some relief to both households and Bank of England policymakers.

The consumer price measure of inflation fell for the first time since last autumn and stood at 2.4% in April, down from 2.8% in March. The drop was driven by lower fuel costs and airfares as the oil price fell, more than offsetting a rise in food prices after damage to crops over the long winter, the Office for National Statistics (ONS) said.

Economists had forecast on average a rate of 2.6% for April and said the softer outcome would give incoming Bank of England governor Mark Carney more room to step in and shore up the recovery should growth falter. But many warned inflation could push higher again in coming months, which would intensify pressure on household budgets already stretched by meagre pay growth.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.