THE UK’s rate of inflation fell to 8.7% in April, the latest official figures show.
It is the first time the rate has dropped below 10% since August last year.
The UK’s rate of inflation fell from 10.1% to 8.7% in April
It is also the second consecutive month the inflation rate has fallen, after dropping to 10.1% in March following an unexpected rise.
Inflation is a measure of how the price of goods and services have changed over the past year.
It has eased slightly since the eye-watering 11.1% seen in October.
This is driven by soaring gas and electricity prices, which have now started to fall.
ONS chief economist Grant Fitzner said: “The rate of inflation fell notably as the large energy price rises seen last year were not repeated this April, but was offset partially by increases in the cost of second-hand cars and cigarettes.”
The slowdown is good news for stretched households, and most experts believe inflation has now peaked.
But price are still rising, although at a slower rate than last month.
Annual food price inflation is nearing to a history high, according to the ONS.
Chancellor Jeremy Hunt said: “The IMF said yesterday we’ve acted decisively to tackle inflation but although it is positive that it is now in single digits, food prices are still rising too fast.”
What does it mean for my money?
Falling inflation indicates that the cost of goods and services are still rising but at a slower rate.
But prices are still higher than they were.
Alastair Douglas, chief executive of TotallyMoney said: “The cost of living is still on the rise, as is the cost of borrowing.
“The result? More people are missing bills, more people can’t keep up with credit commitments, and 50% of adults are feeling more anxious or stressed as a result of inflation.”
He added that even if the Bank of England hits its 2% inflation target in 2024, it is likely households will still feel the impact for “years to come”.
Food and drink prices rose by record levels in the year to March, putting further strain on household budgets.
Alice Haine, personal finance Analyst at Bestinvest, said: “Softening inflation, is better news for budgets relentlessly battered by the cost-of-living crisis over the past 18 months.
“But consumers would be wise to remember that while inflation is falling, prices are still up by 8.7% compared to a year ago with the only consolation that the pace of those prices rises is slowing compared to previous months. “
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