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UK inflation dropped less sharply than expected to 2.3 per cent in April, despite falling energy prices, denting expectations that the Bank of England will lower interest rates this summer.
The rise in the consumer price index was higher than the 2.1 per cent predicted by the BoE and economists polled by Reuters.
But the figure, which compared with March’s rate of 3.2 per cent, is still likely to be hailed by Rishi Sunak’s government as a sign the UK is winning its battle with inflation ahead of the election expected this year.
The BoE, whose Monetary Policy Committee next meets on June 20, has argued it needs more evidence that price pressures are receding before it cuts rates from their current 16-year high of 5.25 per cent.
The bank’s policymakers had predicted a steep fall in inflation due to a reduction in the regulatory cap on household energy bills last month.
This is a developing story
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