UK inflation fell to 2.4 per cent in April from 2.8 per cent in March according to latest statistics published by the Office for National Statistics (ONS). Consensus expectations for the level of inflation were recorded at 2.6 per cent.

The ONS announced that downward contributions came from transport costs notably motor fuels and air fuels with upward pressures stemming from price movements for food and non-alcoholic beverages. Transport price movements fell by 0.6 per cent between March and April 2013 compared with a rise of 1.2 per cent between the same two months over a year ago.

Concerning food and non-alcoholic beverages, prices rose by 0.7 per cent between March and April compared to a fall of 0.1 per cent in the same period in 2012.

Schroders European economist Azad Zangana stated: “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.”

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