UK inflation slows to 2.8% as energy price cap softens impact of rising fuel costs
UK inflation has decreased to 2.8% in April, aided by a reduction in the household energy price cap. This drop is seen as temporary, as rising fuel costs due to the Iran war may soon impact households more significantly. Economists are cautious, noting that wage growth has slowed and unemployment has risen, which could influence future interest rate decisions by the Bank of England.
- ▪The consumer prices index measure of inflation eased from 3.3% in March to 2.8% in April.
- ▪The reduction in the energy price cap lowered the typical annual dual-fuel bill in Great Britain to £1,641 from £1,849 a year earlier.
- ▪Economists predict that the drop in inflation may not last due to soaring petrol and diesel prices linked to the Middle East conflict.
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Economists believe the drop in inflation is unlikely to last. Photograph: Tolga Akmen/EPAView image in fullscreenEconomists believe the drop in inflation is unlikely to last. Photograph: Tolga Akmen/EPAInflationUK inflation slows to 2.8% as energy price cap softens impact of rising fuel costsLower than expected April annual rate a lift for Rachel Reeves, who moved some renewables costs away from household bills Business live – latest updates Tom KnowlesWed 20 May 2026 02.01 EDTLast modified on Wed 20 May 2026 02.22 EDTSharePrefer the Guardian on GoogleUK inflation slowed to 2.8% in April, according to official figures, as a reduction in the household energy price cap helped soften the sharp rise in fuel costs since the start of the Iran war.The Office for National Statistics (ONS) said…
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