Inflation fell less than expected in April. The UK’s consumer price index was 8.7pc higher last month than in April 2022, down from 10.1pc in March.
While the Bank of England had expected a drop to 8.4pc, the market consensus was even lower at 8.2pc – given that wholesale energy prices have fallen sharply since spiking last spring, after Russia invaded Ukraine.
Headline inflation is now significantly lower than October’s peak of 11.1pc – a 41-year high. But “core inflation” rose from 6.2pc to 6.8pc last month, pointing to ongoing supply-chain price pressures beyond volatile food and energy costs. And that’s spooked financial markets since the inflation figures were released last Wednesday.