The inflation rate in the United Kingdom (U.K.) has fallen below 10% for the first time since August 2022 as energy prices continue to trend lower.
Headline inflation during April of this year came in at 8.7% year-over-year, according to the Office for National Statistics.
April’s inflation reading is down substantially from 10.1% in March but above a consensus estimate of 8.2% among economists surveyed by the Reuters News Agency.
A decline in electricity and gas prices contributed the most to April’s inflation decline. However, that drop was partially offset by food and non-alcoholic beverage prices, which continue to rise in the U.K.
On a monthly basis, consumer prices in the U.K. rose by 1.2%, above a consensus estimate of 0.8%.
Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, rose by 6.8% in April, up from 6.2% in March.
British inflation has remained stubbornly high, prompting the Bank of England to raise interest rates 12 consecutive times and bringing its key rate to 4.50%.
Economists expect the British central bank to continue raising interest rates in the near-term to bring inflation under control.
