Economy

UK Inflation Drops to Near Three-Year Low Amid Cooling Energy Prices

Overview of UK Inflation in April

According to official figures, UK inflation fell to the lowest level in nearly three years in April. The Consumer Prices Index (CPI) inflation slowed to 2.3% in April, down from 3.2% in March.

Factors Contributing to the Decrease in Inflation

  • Cooling energy prices
  • Lower electricity and gas prices
  • No duty changes in tobacco prices
  • Reduction in the Ofgem energy price cap

Impact on Various Sectors

Food price inflation saw further falls over the year, while petrol prices experienced a small uptick. These changes partially offset the overall decrease in inflation.

Reactions to the Latest Inflation Figures

A Treasury spokesperson highlighted the measures taken to protect jobs and address energy bill increases. However, there are concerns about the long-term implications of these actions.

Rachel Reeves, the shadow chancellor, expressed a critical view of the current government’s handling of the economy. She emphasized the need for economic stability and highlighted potential risks associated with certain policy decisions.

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