The UK consumer prices index has fallen to 3 per cent in April, according to the Office for National Statistics.
The consumer prices index has fallen 0.5 per cent from 3.5 per cent in March. The retail prices index has fallen to 3.5 per cent in April, down 0.1 per cent from 3.6 per cent in March.
Inflation has fallen markedly since its high in September 2011, but still remains well above the Bank of England’s 2 per cent target. CPI reached a record high of 5.2 per cent in September 2011 while RPI stood at 5.8 per cent in September 2011, its highest point since June 1991. The continued falls came to end last month when CPI rose from slightly to stand at 3.5 per cent.
In the BoE’s latest inflation report, issued earlier this month, the bank said inflation will not fall as quickly as previously thought and will remain above the 2 per cent target “for the next year or so”.
The ONS says the timing of Easter had a significant impact on the April data. It says air transport, off-sales of alcohol, clothing and sea transport were the most significant drivers behind the decrease in CPI between March and April. Partially offsetting these were smaller upward pressures from the operation of personal transport equipment, restaurants & hotels and rents.
It says the largest downward pressures which led to the fall in RPI came from alcoholic drinks, clothing, fares & other travel and the purchase of motor vehicles. Partially offsetting these were upward pressures from housing and petrol & oil.