For the first time in eight months, inflation has decreased to single figures, indicating a slowdown in the escalating cost of living following the previous year’s energy predicament.
The Office for National Statistics reports that the consumer prices index experienced a reduction from 10.1 percent in March to 8.7 percent in the preceding month.
This is the initial instance since last August that it has fallen beneath the 10 percent mark.
The decline is attributed to the exclusion of last April’s drastic surge in energy prices from the computation. A year ago, the energy price cap soared in response to the spike in wholesale prices triggered by Russia’s incursion into Ukraine.
In April of the previous year, the energy price cap experienced a significant increase of 54%, climbing to £1,971. However, the Energy Price Guarantee (EPG) has remained steady at £2,500 since last October.
Despite this, inflation for food and drink prices continues to hover above 19%, with a slight dip from 19.2% in March to 19.1%, which is near the highest it’s been in 45 years.
The considerable decrease in inflation is predicted to bolster arguments for the Bank of England to maintain interest rates at 4.5%, following twelve consecutive hikes.
Among the G7 advanced nations, UK’s inflation rate has been the highest, underscoring the country’s dependency on imported energy and food.
As of March, the UK topped the G7 countries in energy price inflation, while its food price inflation was only outpaced by Germany.
