Log In

Reset Password

UK inflation falls to 2.8%

LONDON (AP) — Consumer price inflation in Britain eased to 2.8 percent in April, official figures showed yesterday, but remained stubbornly above the government's target and retained pressure on interest rates.The rate for the 12 months ending in April dipped from 3.1 percent in March, as lower prices for gas and electricity moderated higher prices for clothing and restaurant meals, the Office for National Statistics said.

Earlier this month, the Bank of England raised its base lending rate by a quarter of a point to 5.5 percent in an attempt to stem inflation.

The retail price index, which includes housing costs, was up to 4.5 percent in April, compared to 4.8 percent in March.

Last month's inflation report sent the British pound above $2 for the first time in more than 15 years.

Howard Archer, an analyst at Global Insight, said he believed the Bank of England will raise interest rates again despite April's better figures.