Inflation fell to 2.8 percent in April

The UK’s inflation rate slowed in April, thanks to lower energy bills and the Bank of England. Consumer price Index (CPI) slashed by 0.3 percent to 2.8 percent against 3.1 percent in March. The CPI fall recorded on the drops in energy prices, Power suppliers have been reducing prices since March after wholesale costs came down. British Gas was the first to implements cuts, dropping gas charges by 17 percent and electricity by 11 percent in March, followed closely by a further 6 percent fall in electricity and 3 percent drop in gas tariffs. Office for National Statistics asserted that the Retail Prices Index, an inflation measure often used in pay bargaining, also fell to 4.5 percent in April from 4.8 percent in March, which was its highest level for more than 15 years. Recent recorded drop in the inflation as both CPI and RPI saw downward effects from cuts in the cost of household goods, furniture and with airfare. Inflation drop also kindle the hope to homeowners that the Bank will not raise interest rates again after the quarter-point increase to 5.50 percent. Although inflation fell to year lowest point, but still it is very far from its projected target to 2 percent and plan could be lost in obscurity as prices of clothing, footwear, lather items, restaurant and hotel bills are rising. Prices of eating goods like vegetables and meats are continuously rising.

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