UK inflation hits 0.3% in first fall since September

Driven by drop in air fares

The UK's inflation rate fell to 0.3% in April, according to the Office for National Statistics (ONS), down from 0.5% in March.

The fall in inflation, as measured by the Consumer Price Index, is the first since September. Following the announcement, the FTSE 100 rose 0.64% to 9191 points, while the sterling rose 0.55% against the dollar to $1.4481. The ONS said the main reason for the drop in the rate this month was a 14.2% fall in air fares, compared with a rise of 4.5% between the same two months last year. Sterling rebounds as inflation beats expectations with 0.5% rise in March The month also saw a drop in prices for clothing, vehicles, and social housing rent. However, the Bank of England said la...