How inflation drop to 8.7% will impact your household budget, savings and mortgages over next few months
dailyrecord.co.ukSoaring food prices have seen UK inflation ease back far less than expected in April, keeping up the pressure on households and raising the spectre of yet more interest rate rises.
The Office for National Statistics said Consumer Prices Index (CPI) inflation fell to its lowest level for more than a year last month, at 8.7 per cent down from 10.1 per cent in March, as energy prices stabilised after sky-high rises a year ago.But it was higher than forecast by economists, who had pencilled in a drop to 8.2 per cent in April, and more than the Bank of England had predicted just two weeks ago.
The figures showed food inflation at 19.3 per cent, down only slightly on March’s eye-watering 19.6 per cent and remaining close to the highest rate for more than 45 years.Chancellor Jeremy Hunt admitted food prices are “still rising too fast”.
He said: “Today’s fall in inflation shows we’re on the right track but there is no room for complacency.”However, he added: “It’s tough right now but things will get better.”Economists said another rise in interest rates was looking increasingly more-likely after inflation had not fallen as fast as hoped.
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