The Consumer Prices Index (CPI) rose by 2.3 per cent in the 12 months to April 2024, down from 3.2 per cent in March, figures published today show.
Inflation is getting closer and closer to the Bank of England’s target of two per cent.
Inflation has been steadily falling in recent months, easing conditions for households and businesses who faced rapidly rising prices during the cost-of-living crisis.
Although the figure is falling, prices are still rising, it just means not as quickly.
City economists had predicted CPI inflation to fall to 2.1 per cent in April.
This would mark the lowest level since July 2021 when inflation was recorded at two per cent – the Bank of England’s target level.
Lower gas and electricity prices compared with the prior year were expected to be the key driver behind price rises cooling last month.
But the level of services inflation in the latest official data release will be watched closely by those monitoring the Bank of England’s next move, experts said.
Experts said April’s data could be “make or break” for the Bank, which has been waiting for firm evidence that CPI has reached its target level before it can cut interest rates.
Inflation is “back to normal” and “brighter days are ahead”, Rishi Sunak has said in response to the latest figures.
The Prime Minister said: “Today marks a major moment for the economy, with inflation back to normal.
“This is proof that the plan is working and that the difficult decisions we have taken are paying off.
“Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.”
However the latest inflation figures are not the time for ministers to be “taking a victory lap”, Rachel Reeves said.
In a statement released in response to the latest figures, the shadow chancellor said: “Inflation has fallen, but now is not the time for Conservative ministers to be popping champagne corks and taking a victory lap.
“After 14 years of Conservative chaos families are worse off. Prices in the shops have soared, mortgage bills have risen and taxes are at a 70-year high. Rishi Sunak is now putting family finances at risk again with his £46 billion unfunded policy to abolish national insurance that will mean higher borrowing, higher taxes or the end of the state pension as we know it.
“It’s time for change. Labour’s first steps will deliver economic stability so we can grow our economy and keep taxes, inflation and mortgages as low as possible.”
