UK inflation falls below 10% but food prices still high
By Michele Maatouk
Date: Wednesday 24 May 2023
(Sharecast News) - UK inflation fell in April - albeit less than expected - but food prices remained near record highs, according to figures released on Wednesday by the Office for National Statistics.
Consumer price inflation declined to 8.7% from 10.1% in March, versus expectations for a fall to 8.2%. Nevertheless, it was the first time consumer price inflation came in below 10% since August last year, as energy prices eased off their highs. Inflation is now at its lowest level since March 2022.
The ONS said electricity and gas prices contributed 1.42 percentage points to the fall in annual inflation as last April's rise dropped out of the annual comparison.
Food inflation remained close to its highest level in 45 years, however, at 19.1% in April, down just a touch from 19.2% the month before.
Core inflation, which strips out energy, food, alcohol and tobacco, rose to 6.8% in April from 6.2% in March, marking the highest rate since March 1992.
Capital Economics said the smaller-than-expected fall in CPI inflation "means it is now very hard to imagine the Bank of England not raising interest rates from 4.50% to 4.75% in June".
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