UK inflation falls to 8.7% in April
May 24, 202396 views0 comments
By Luther Animashaun
The Office for National Statistics (ONS) has announced that the Consumer Prices Index (CPI) of the United Kingdom decreased from 10.1 per cent in March 2023 to 8.7 per cent in April 2023, its lowest level since March 2022.
This decrease was attributed to the absence of energy price hikes seen in 2022. However, the rate is still higher than expected due to a near-record rise in food prices. The figures showed food CPI inflation at 19.3 per cent, down only slightly from March’s 19.6 per cent.
According to Grant Fitzner,the ONS chief economist, the rate of inflation fell notably as the large energy price rises seen in 2022 were not repeated in April. But was offset partially by increases in the cost of second-hand cars and cigarettes.
Fritzner noted that prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs.
Meanwhile, Chancellor Jeremy Hunt welcomed the decrease in the inflation rate, but said the government must continue to work towards reducing inflation.
Hunt said although it is positive that it is now in single digits, food prices are still rising too fast.
“So, as well as helping families with around £3,000 of cost-of-living support this year and last, we must stick resolutely to the plan to get inflation down,” he added.
Inflation is a measure of the rate at which the prices of goods and services are rising. Analysts consider high inflation a sign of an overheating economy, which can lead to higher interest rates and lower economic growth. Therefore, policymakers are advised on the cruciality of keeping inflation rates low and stable to enhance economic development.