Inflation in the UK has slowed to an annual rate of 2.3%, down from 3.2% in March, on lower energy costs. Economists had expected a larger slowdown to 2.1%. March’s slowdown was also not as big as expected. The Office for National Statistics said: "Falling gas and electricity prices resulted in the largest downward contributions to the monthly change in both CPIH and CPI annual rates, while the largest, partially offsetting, upward contribution came from motor fuels, with prices rising this year but falling a year ago." The Bank of England and the Office of Budget Responsibility are forecasting that inflation will fall to about 2% by early summer. A Treasury spokesperson said about today’s data: "We rightly protected millions of jobs during Covid and paid half of people’s energy bills after Putin’s invasion of Ukraine sent bills skyrocketing – but it wouldn’t be fair to leave future generations to pick up the tab. "That’s why we must stick to the plan to get debt falling. The economy is turning a corner, with strong growth this quarter and inflation close to target, allowing us to cut taxes for the average worker by £900 a year." Factory gate prices rose by an annual rate of 1.1% in April, up from 0.7% in March, the ONS said. Producer prices eventually feed through to consumer prices. The inflation figures are a bit of a disappointment for the chancellor, Jeremy Hunt, and the public finance figures aren’t good either. The government borrowed £20.5bn in April, the fourth-highest April borrowing since monthly records began in 1993. Borrowing in April – the difference between public sector spending and income – was £1.5bn more than in April 2023 and £1.2bn more than the £19.3bn forecast by the Office for Budget Responsibility. The agenda • 10am BST: former Post Office CEO Paula Vennells to appear before Horizon inquiry • 9.30am BST: UK house prices/rents for April • 5pm BST: Deadline for BHP to make a firm offer for Anglo American or walk away • 7pm BST: US Federal Reserve open market committee minutes We’ll be tracking all the main events throughout the day ...
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