Economic news

UK inflation’s unexpected slump makes interest rate increase uncertain

UK inflation dipped suddenly last month, data says, which poses new questions on the timing of the next interest rate hike. This also sent pound tumbling to a record low versus the U.S. dollar in 2018.

Photo: Matt Cardy/Getty Images

Consumer prices grew by a yearly 2.4%, according to yesterday’s report by the Office for National Statistics, becoming the lowest level in 13 months due to Easter holidays, when air fares pressured inflation.

While the BoE had projected a slowdown in April’s inflation, the majority of analysts in a poll by Reuters said it would keep level at 2.5%, a few expected upping.

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