Inflation falls to 2.8% but is expected to rise from here
BBC • • world
Key Points:
- The UK's inflation rate dropped to 2.8% in April, down from 3.3% in March, mainly due to lower gas and electricity bills supported by government measures and reduced wholesale energy prices before the Iran conflict.
- Despite the current dip, inflation is expected to rise to around 4% by the end of 2024 as the ongoing Middle East conflict drives up global energy and fuel prices.
- Fuel prices have surged, with petrol reaching new highs in May, reflecting the continued pressure on consumers despite the overall slower inflation rate.
- Chancellor Rachel Reeves plans to introduce further cost-of-living support to help households manage anticipated higher energy costs, while analysts warn that recent inflation relief may be temporary.
- Producer input costs and food price inflation remain concerns, with industry experts predicting significant price increases ahead due to rising fuel and transportation expenses.