STORY
UK inflation fell to 2.8% in the year to April, easing more than expected after lower household energy bills offset some of the upward pressure from fuel prices. The fall from 3.3% in March was reported after the April energy price cap reduction fed through into household bills.
The figures will be watched closely by ministers and the Bank of England as they assess the pressure on household finances. Food inflation also slowed, while economists said the softer headline number reduced the immediate likelihood of a further increase in interest rates.
The improvement may prove temporary, with fuel costs rising sharply following disruption in the Middle East and further pressure possible later in the year. For the Government, the figures provide some relief, although ministers remain under pressure to show that lower inflation is being felt in living standards.