The rate of inflation in Britain is declining and falling at its fastest rate in 30 years – Al-Nasr Newspaper
Data from the Office for National Statistics on Wednesday showed that the country’s annual consumer price inflation slowed at its fastest pace in nearly 30 years, falling to 8.7% in April from 10.1% in March, also for the first time. It has fallen to single digits since last August.
Economists polled by Reuters had forecast annual growth falling to 8.2 percent in April, well below a 41-year high of 11.1 percent in October, but still weighing on the purchasing power of workers whose wages are rising more slowly.
On the other hand, a Bloomberg survey predicted that UK consumer prices would fall to 8.2% in April 2023 from 10.1% in March last year, the sharpest drop in annual inflation in more than 30 years and affecting households. . An amazing opportunity. Facing the worst inflation in generations.
Britain’s finance minister, Jeremy Hunt, on Wednesday reiterated the need to stick to the government’s plan to lower inflation after official data showed that price growth fell in April.
“While it is positive that (inflation) is now in the single digits, food prices continue to rise rapidly,” Hunt said in a statement, and the inflation-lowering plan must be rigorously implemented.
The data is likely to feed into market expectations that the Bank of England will extend its rate hike cycle into the summer to reduce price pressures. The most troubling data from the Bank of England was the unexpected acceleration in core inflation – which excludes volatile food and energy prices. 6.8%, the highest level since 1992, after recording 6.2% last March.
The Office for National Statistics said the decline in inflation was largely driven by the cost of gas and electricity, with prices stabilizing in April compared to an unprecedented rise in the same month last year.
The energy price cap was raised by 54% to £1,971 in April 2022 to reflect for the first time the impact of the Russian war in Ukraine on European gas and electricity supplies.
Energy costs have been the main cause of the cost-of-living crisis since Ukraine, driving up not only household energy bills but also manufacturing and transportation prices.
BoE Governor Andrew Bailey recently confirmed that the Monetary Policy Committee will adjust interest rates if needed to bring inflation back to a sustainable target over the medium term.
Bailey added that the central bank was looking for “evidence” that inflation was falling before it “takes a break” from its most aggressive monetary policy cycle in four decades.
