UK Inflation Eases as CPI Growth Slows in April 2024
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- Published: Saturday, 25 May 2024 17:59
The United Kingdom's Consumer Prices Index (CPI) rose by 2.3 percent in the 12 months leading to April 2024, a notable decrease from the 3.2 percent recorded in the 12 months to March. According to the Office for National Statistics (ONS), the monthly CPI growth was 0.3 percent in April 2024, compared to a significant 1.2 percent rise in April 2023.
Core CPI, which excludes volatile items such as energy, food, alcohol, and tobacco, experienced a 3.9 percent increase in the 12 months to April 2024. This is a slight decline from the 4.2 percent growth observed in March. The annual rate for CPI goods showed a notable slowdown, dropping from 0.8 percent to a negative 0.8 percent. In the clothing and footwear sector, CPI rose by 3.7 percent over the year to April 2024.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) saw a 3.0 percent increase in the 12 months to April 2024, down from 3.8 percent in the previous 12 months to March. Monthly CPIH rose by 0.5 percent in April 2024, compared to a 1.2 percent rise in April 2023.
The input Producer Price Index (PPI) annual inflation rate improved to negative 1.6 percent in the year to April 2024, up from negative 2.5 percent in March 2024. This marks the 11th consecutive month of negative annual rates but is the highest it has been since May 2023. On a monthly basis, the input PPI inflation rate was 0.6 percent in April 2024, following a revised 0.2 percent decline in March 2024. Meanwhile, the output (factory gate) PPI annual inflation rate rose to 1.1 percent in the year to April 2024, up from a revised rate of 0.7 percent in March 2024.
Kris Hamer, Director of Insight at the British Retail Consortium, commented on the trends: "Inflation continued to head back towards the Bank of England’s 2% target, with a significant drop in April. Retailers are playing a key part in bringing inflation down, but it is vital that government policy supports this too. Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people, and serving millions more."
Hamer further emphasized the impact of rising costs from new policies on both businesses and customers: "As the cost burden of new policies rises—from business rates to packaging taxes—this affects not just the businesses, but the customers too. With an election looming, it is vital that parties outline their support for customers and retailers through the upcoming manifestos."
In summary, the latest ONS data indicates a deceleration in the UK’s inflation rates, providing some relief amid ongoing economic challenges. The role of retailers and supportive government policies will be crucial in sustaining this positive trend as the country moves towards more stable inflation targets.