Briefing Note
Headline inflation falls, but its decline disappoints
01 Jun 2023
Key messages:
- Despite some positivity around a decline in headline UK CPI inflation, April’s inflation release was disappointing.
- As anticipated, headline inflation is falling and is expected to continue to do so.
- However, ongoing pressures on core inflation mean there is far more uncertainty around how fast inflation will fall and where it will settle.
Overview
Despite some positivity around a decline in headline UK CPI inflation, April’s inflation release made for some pretty ugly reading. As anticipated, headline inflation is falling and is expected to continue to do so. However, ongoing pressures on core inflation mean there is far more uncertainty around how fast inflation will fall and where it will settle.
While headline UK CPI inflation fell from 10.1% year-on-year in March to 8.7% year-on-year in April, it did so less than markets or the Bank of England had expected.
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