UK inflation drops during April

<p>Inflation is not far from the two per cent target.</p>

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

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.