inflation rates lowest since 2021
Key Points at a Glance:
- The Consumer Prices Index (CPI) rose by 2.3% in the 12 months to April 2024, down from 3.2% in the 12 months to March.
- The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.0% in the 12 months to April 2024, down from 3.8% in the 12 months to March.
UK inflation has decreased to 2.3%, just above the 2% target, marking the lowest level in almost three years.
This indicates that prices are still increasing, but at a slower pace.
“Today marks a major moment for the economy, with inflation back to normal,” says Rishi Sunak.
Inflation was at 3.2% in the year leading up to March 2024, the lowest rate since September 2021.
Chancellor Jeremy Hunt acknowledges that prices remain “much higher” than a year ago, but notes that there are “encouraging signs.”
The decline in inflation is expected to prompt an interest rate cut later this year.
Inflation peaked at 11.1% in October 2022, the highest in 40 years, and the government had pledged to halve this rate in 2023.
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Data Source: Office for National Statistics (ONS)
Read more: Consumer price inflation, UK: April 2024
