Inflation falls to 8.7% in April

Inflation has fallen to 8.7% in April, marking the first time it has been in single digits since last summer, according to the latest figures from the Office for National Statistics.

Inflation was down from 10.1% in March 2023 and increased by 1.2% in April 2023, compared with a rise of 2.5% in April 2022.

Electricity and gas prices contributed 1.42 percentage points to the fall in annual inflation in April as last April’s rise dropped out of the annual comparison, but this component still contributed 1.01 percentage points to annual inflation.

Meanwhile, food and non-alcoholic beverage prices continued to rise in April and contributed to high annual inflation, however, the annual inflation rate of food and non-alcoholic beverages eased, from 19.2% in the year to March 2023, to 19.1% in the year to April 2023.

The ONS found that the decrease in the annual rate for food and non-alcoholic beverages between March and April 2023 was driven by price movements from six of the 11 detailed classes and the largest negative contributions came from bread and cereals; fish; milk, cheese and eggs; and sugar, jam and honey.

In addition, the annual inflation rate for transport was 1.6%, the first increase in its rate of annual inflation in nine months, having peaked at 15.2% in June 2022.

The largest positive contribution came from vegetables (including potatoes and other tubers), where prices rose by 1.8% in the month to April 2023 but only rose by 1.3% in the equivalent time period a year earlier.

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.

“However, prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs.”