“This latest drop confirms that the UK has reached the final leg of its inflation fight.
“A landmark decline in inflation is locked-in for April, as lower energy bills following the reduction in Ofgem’s energy price cap, will have almost certainly pulled the headline rate below the Bank of England’s 2% target.
“Easing services and core inflation suggests a softening of underlying price pressures. While the National Living Wage increase is an upside risk, the squeeze from a cooling jobs market should help keep them on a downward trajectory.
“Though this inflation fall won’t be sufficient to drive a cut in interest rates next month, this outturn may persuade more rate setters to vote to loosen policy, providing a clear signal that rate cuts are on the horizon.”
ENDS
Notes to editors:
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