Hotter than expected UK inflation dampens June rate cut hopes

CPI falls to 2.3% in April

UK inflation came in higher than expected for April at 2.3%, but this was still the lowest level since summer 2021.

Economists had forecast the Consumer Price Index to drop to 2.1% for the month, a sharp drop from 3.2% in March. On a monthly basis, CPI rose by 0.3% in April 2024, compared with a rise of 1.2% in April 2023, according to data from the Office for National Statistics. Falling gas and electricity prices caused the largest downward contributions to the monthly change in both CPIH and CPI annual rates, the ONS said. Meanwhile the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but still down over 12 months. BoE's Ben Broadbent: ...