UK inflation falls to 8.7% but food prices remain stubbornly high
UK inflation fell to 8.7 percent in April, a smaller drop than the Bank of England had expected, increasing pressure on the central bank to continue raising interest rates.
The number is a blow to the ministers and the central bank, because the drop in consumer price inflation from 10.1 percent in March was significantly smaller than the expected 8.4 percent drop.
Food price inflation remained close to a 45-year high, at 19.1 percent in April, compared to 19.2 percent in March.
More worryingly for price stability, core inflation excluding food, alcohol, tobacco and energy prices jumped from 6.2 per cent to 6.8 per cent, underscoring the risk that inflation will remain high in the UK.
Chancellor Jeremy Hunt said: “The IMF said yesterday that we have taken firm action to tackle inflation, but while it is positive that inflation is now in single digits, food prices are still rising too quickly.”
“We must firmly stick to the plan to reduce inflation,” he added.