ONS: UK CPI Inflation Falls to 2.8% in April — Services Inflation at Four-Year Low

The Office for National Statistics released UK Consumer Prices Index data for April 2026 on 21 May 2026. Headline CPI fell to 2.8% from 3.3% in March — a sharper decline than many City economists had forecast and the lowest reading since the Bank of England began its rate-hiking cycle in late 2021. Services inflation — a closely watched measure of domestically generated price pressures — fell to 3.2% from 4.5%, its lowest level since January 2022. Food price inflation also eased, with grocery prices rising at the slowest annual rate since 2021. The data reinforced market expectations that the Bank of England's Monetary Policy Committee would cut Bank Rate from its current 3.75% at its June 2026 meeting, with markets pricing a 25 basis point reduction. Core CPI (excluding energy and food) also fell. The ONS noted that falling energy bills following the April 2026 Ofgem price cap reduction were a significant contributor to the downward move.