UK headline inflation slowed sharply in the year to April, the Office for National Statistics said Wednesday, although core inflation jumped to the highest level since March 1992.
Headline inflation fell to 8.7% year on year, while core CPI came in at 6.8%. Within services, good inflation slowed, but services inflation rose from 6.6% to 6.9% y/y -- also the highest since March '92.
The data was above expectations of financial market economists, who had predicted a dip to 8.2%. The Bank of England expected inflation to fall sharply in April, with another leg lower expected in May. At the recent MPC meeting, policymakers said inflation will likely average 8.2% in Q2, before dipping to 3.4% in Q4 2023.
UK headline inflation declined sharply in April, but BOE concerns as core outpaced expectations.
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