UK inflation drops to 8.7% in April

Due to energy prices

The UK inflation rate fell from 10.1% in March to 8.7% in April, driven by a drop in energy and gas prices.

However, core CPI, which excludes energy and food prices, rose from 6.2% to 6.8% last month, reaching the highest level in 30 years. After April 2022 saw energy prices spike by 47.5%, this has since dropped out of the year-on-year equation, leading the comparative inflation rate to naturally fall. Food inflation remained strong, at 19.1% in April, compared to 19.2% the month before, while service inflation saw a 1.6% month-on-month increase. Deep Dive: Bond managers must 'unlearn' the past decade of central bank lessons Markets are now pricing in two further interest rate hi...