UK April inflation lowest in almost three years as IMF upgrades growth forecast

LONDON (ICIS)–UK inflation fell to its lowest level in almost three years in April, driven down mainly by lower energy costs, according to official data on Wednesday.

The Consumer Prices Index (CPI) rose by 2.3% in the 12 months to April, down from 3.2% in the 12 months to March.

Lower gas and electricity prices resulted from the UK energy regulator Ofgem lowering its price cap in April, the Office for National Statistics said.

“Prices of electricity, gas and other fuels fell by 27.1% in the year to April 2024, the largest fall on record, with figures available back to 1989.”

On Tuesday, the International Monetary Fund (IMF) upgraded its growth forecast for the UK and said the economy was “approaching a soft landing”.

Inflation closer to the Bank of England’s target of 2% means that interest rate cuts are more likely, with the IMF recommending cuts of 50-75 basis points this year.

UK CPI inflation hit a recent peak of 11.1% in October 2022, the ONS said in its statement.