THE rate of inflation in the UK has fallen to its lowest level in more than a year, new figures from the Office for National Statistics (ONS) reveal.
In the latest figures for April 2026, the Consumer Prices Index (CPI) rate of inflation, the most widely used measure in the UK, fell to 2.8%, down from 3.3% in March.
The fall was more than expected, with most economists forecasting a drop to 3%.
A big driver of the expected slowdown came from Ofgem lowering its energy price cap from the start of April by 7%, or £10 a month, for the average household using both electricity and gas.
This offset some of the initial inflationary pressure stemming from the Iran war and the ongoing oil price spike, with the rate expected to rise again in coming months.
ONS chief economist Grant Fitzner explained which areas were offsetting the rise in fuel and oil prices, saying: “Smaller rises in water and sewage bills and Vehicle Excise Duty than seen last year also helped pull the rate down.
"Food prices, particularly for chocolate and meat products, and the price of package holidays drove inflation down further.
“These were only partially offset by a further increase in petrol and diesel prices, and an uptick in the cost of clothing and footwear.
“The annual cost of both raw materials and goods leaving factories continued to rise, driven again by higher crude oil and petrol prices.”
Chancellor Rachel Reeves is expected to outline a package of cost-of-living support this week in response to the war.
Reeves said: “The war in Iran is not our war but one we will need to respond to, and the decisions I took in the budget last year have kept inflation down as we deal with global instability.
“We have the right economic plan, and to change course now would risk our economic stability and leave working people worse off.
“We have already taken £117 off energy bills, frozen rail fares, and lifted the two-child limit, and over today and tomorrow I’ll set out the next phase of how we will support UK households.”
