UK annual inflation dips to lowest in 13 months

LONDON

May 24, 2018-Britain’s annual inflation rate eased in April to 2.4 percent, the lowest level since March 2017, official data showed on Wednesday, weighing on the pound.

The Consumer Prices Index 12-month rate had stood at 2.5 percent in March, the Office for National Statistics said in a statement.

Analysts had expected the rate to remain unchanged last month, but it was helped lower by cheaper air fares, the ONS added.

With inflation falling in recent months and Britain’s economic growth suffering a sharp slowdown in the first quarter amid tough Brexit talks, the Bank of England decided against raising its key interest rate earlier this month.

But with oil prices on the rise and the pound weakening, inflation risks picking up again in the coming months.

“The jump in the oil price has started to hit petrol pumps, pushing up costs for UK consumers and businesses alike,” said Kevin Doran, investment officer at AJ Bell.

“In addition, the weak pound will be driving up input costs for many UK companies which will

ultimately filter through to UK consumers in the coming months.”

Published: 24-05-2018 07:45

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