Britain’s annual inflation rate dropped more than expected in April, easing pressure on the Bank of England to raise interest rates further.
UK annual consumer price inflation fell to 2.8% in April from 3.3% in March, the Office for National Statistics reported. The reading undershot economists’ median forecast of 3.0% and marked the lowest rate since July 2021.
March’s inflation print had been 3.3%, while the Bank of England’s 2% target remains out of reach. Core inflation and services inflation, closely watched by policymakers, were not detailed in the release.
Markets are now pricing a higher probability of an August rate cut by the BoE, with gilt yields edging lower in early trade.