Inflation In The UK Hits Higher Than Expected
The rate of UK inflation in April was 8.7%, the lowest in more than a year, but still higher than economists predicted. After raising rates for the 12th consecutive month in May, the market now anticipates another increase in June.
According to the National Statistics Service of the UK, consumer price index (inflation) increased by 8.7% in April compared to April 2022. Since March 2022, when prices increased by 7% annually, this hike has been the least. In comparison to March, when prices increased 10.1% annually, annual inflation has marginally moderated. This was made possible by cheaper gas and electricity compared to the spring of 2022, when energy prices spiked.
Core inflation (energy, food, alcohol, and cigarettes excluded) increased 6.8% year over year when. Reuters observed that this is the best outcome since March 1992. Service prices peaked during the same period. Compared to April 2022, prices for food and non-alcoholic beverages increased by 19.1% in April.