London, Thanasis Gavos

UK inflation fell to 8.7% in April, falling below 10% for the first time since August.

According to the Office for National Statistics (ONS) which released data this morning, the reduction in inflationary pressures is mainly due to the stabilization of gas and electricity prices last month. The previous April, on the contrary, the cost of energy had skyrocketed due to the Russian invasion of Ukraine.

Nevertheless, the increased energy costs of the previous months are still reflected in increased costs for industry and transport, but also in the still high household energy bills.

In addition, according to today’s data, separate food and non-alcoholic inflation stood at 19% in April, only marginally down from March’s 19.1%.

Consequently, the pressure on households is expected to continue, as the rate of wage growth continues to lag behind inflation.

Also, although the IMF made a significant revision to its forecasts for the UK economy this year, stating that it now expects a positive growth rate of 0.4% instead of a negative rate of 0.7%, it pointed out that a further increase in the basic lending rate, which already amounts to 4.5%.

Reacting to the fall in inflation, Chancellor of the Exchequer Jeremy Hunt commented: “The IMF said yesterday that we have acted decisively to tackle inflation, but while it is positive that it is now in single digits, food prices are still rising very quickly.

So, alongside almost £3,000 in cost-of-living support for families last year and this year, we must stick resolutely to the plan to reduce inflation.”