You are here: Home - Household Bills - News -

Inflation falls for first time since September

Written by:
UK inflation dropped to 0.3% in April, marking the first fall since September, official figures show.

The rate, as measured by the Consumer Prices Index, fell from 0.5% in March.

Falls in air fares and prices for clothing, vehicles and social housing rent were the main contributors to the decrease in the rate, the Office for National Statistics said.

Maike Currie, investment director for personal investing at Fidelity International, said: “With inflation more than one percentage point away from the Bank of England’s 2% target, governor Mark Carney has penned his sixth consecutive open letter to the Chancellor, explaining the current weakness in inflation reflecting the past falls in energy and food prices alongside the drag on imports given sterling’s past appreciation.

“The Bank of England however expects inflation to increase steadily over the following months, reaching 0.9% in September, as the falls in energy and food prices drop out of the annual comparison. The recent pickup in oil prices should also support a rise in prices coupled with the weaker pound.”

By far the largest downward effect came from air transport, with prices falling by 14.2% compared with a rise of 4.5% between the same two months last year. This was due to the earlier than usual timing of Easter, which contributed to a large increase in fares between February and March 2016, with a subsequent fall in April 2016.

Last week, the Bank of England’s Monetary Policy Committee voted unanimously to hold the Bank Base Rate at its record low of 0.5% for another month.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week