UK inflation slows to 8.7% – Kommersant

In April, the annual inflation rate in the UK continued to decline. For the first time since August 2022, the consumer price index fell below the psychological mark of 10%, amounting to 8.7% year on year. Such data are given in the report of the UK Office for National Statistics (ONS). The ONS said a key measure of inflation that excludes energy, groceries, alcohol and tobacco rose 6.8% year-on-year in April, the highest since March 1992.

Prices for food and non-alcoholic drinks, which in March year-on-year soared to the highest level since August 1977, in April they showed growth slightly lower – 19.0%. And this category still retains the highest rate of price growth. Looking at individual products, the biggest year-on-year price increases were for sugar – 47.4%, olive oil – 46.4%, eggs – 37%, low-fat milk – 33.5%, cheese – 30. 6%. In second place in terms of price growth is the category of utilities – 12.3%, followed by restaurants and hotels – 10.2%.

ING investment bank economist James Smith told the newspaper The Guardian inflation data: “British inflation was higher than expected by almost everyone, including the Bank of England. This, of course, makes life difficult for the country’s leadership and increases the likelihood of raising the interest rate by another 25 basis points in June.” According to experts, if the current downward trend in food prices continues until the end of the year, then “by Christmas, food inflation will return to 6% or lower.”

Alena Miklashevskaya