UK inflation drops during April
Inflation is not far from the two per cent target.
Inflation in the UK dropped from 2.8 per cent in March to 2.4 per cent last month, according to the release of official data.
Figures from the Consumer Price Inflation index revealed inflation fell over the course of the last month, with transport costs – notably motor fuels and air fares – highlighted as the main downward pressures.
However, price movements for food and non-alcoholic beverages have continued to push inflation up in recent weeks, it was noted in the report.
"This is the first time that the growth in inflation has slowed since autumn 2012," it said, pointing out that inflation is "stable" in the UK at the present time.
But the inflation rate of 2.4 per cent remains above the two per cent target rate set by the government, so the Bank of England will have to explain why this is the case.
Azad Zangana, European economist for Schroders, suggested this drop in inflation during April is going to be "temporary" and next month's data will show an increase.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
Latest market news
Today 04:00 PM
Today 01:15 PM
Today 11:30 AM
Today 08:18 AM