Articles - UK inflation falls temporarily

 Schroders' European Economist, Azad Zangana, comments on today's consumer price index (CPI) data:

 'UK inflation has fallen for the first time in seven months. The consumer price index (CPI) measure of annual inflation fell from 2.8% in March to 2.4% in April, falling by more than consensus expectations (2.6%).

 The fall is attributed to lower fuel prices, as falls in global oil prices have fed through to lower prices on forecourts. In addition, smaller increases in duties from the Chancellor's budget compared to a year ago also contributed to the fall in prices. Core inflation (excluding food and energy) also fell from 2.4% to 2% - falling to its lowest rate since November 2009.

 The fall in March's annual inflation rate will come as a relief to households, who on average are only seeing 0.4% increases in pay compared to a year ago. Unfortunately, the fall in inflation should be temporary. Looking ahead, next month's inflation release will also include further falls in energy prices, however, these are unlikely to continue, which is likely to push inflation higher again in following months.'