Kate Andrews Kate Andrews

Inflation falls close to target, but could interest rate cuts be delayed?

Rishi Sunak and Jeremy Hunt (Getty images)

The UK inflation rate has slowed to 2.3 per cent on the year to April, down from 3.2 per cent in March. This marks the lowest headline inflation rate in almost three years, before the unwinding of lockdowns and release of pent-up demand sent prices spiralling. The Spectator‘s Data Hub outlines the inflation saga below:

April’s slowdown is largely thanks to Ofgem’s reduction to the energy price cap, as higher energy costs fell out of the data. The lower cap saw bills reduce by around 12 per cent: a reduction of £238 from the average household’s yearly bill. According to the Office for National Statistics, the ‘prices of electricity, gas and other fuels fell by 27.1 per cent in the year to April 2024, the largest fall on record, with figures available back to 1989.’ 

The Chancellor’s decision not to raise tobacco duty in his March Budget also contributed to a slowdown in price rises, as did the cost of food and non-alcoholic drinks: prices rose by 2.9

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