Britain’s annual inflation rate fell more than expected in April, easing pressure on the Bank of England for immediate rate hikes.
UK annual consumer price inflation cooled to 2.8% in April from 3.3% in March, the Office for National Statistics reported. The print undershot the 3.0% consensus forecast, marking the lowest reading since July 2021.
March’s inflation rate stood at 3.3%, while economists had anticipated a modest decline to 3.0%. Core inflation and services inflation details are expected to follow in the full release.
Markets are pricing a higher probability of a Bank of England rate cut in the coming months as inflation trends closer to the 2% target.