Publication

Briefing Note

Headline inflation falls, but its decline disappoints

01 Jun 2023

Key messages: 

  • Despite some positivity around a decline in headline UK CPI inflation, April’s inflation release was disappointing.
  • As anticipated, headline inflation is falling and is expected to continue to do so.
  • However, ongoing pressures on core inflation mean there is far more uncertainty around how fast inflation will fall and where it will settle.

Overview

Despite some positivity around a decline in headline UK CPI inflation, April’s inflation release made for some pretty ugly reading. As anticipated, headline inflation is falling and is expected to continue to do so. However, ongoing pressures on core inflation mean there is far more uncertainty around how fast inflation will fall and where it will settle.

While headline UK CPI inflation fell from 10.1% year-on-year in March to 8.7% year-on-year in April, it did so less than markets or the Bank of England had expected. 

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Headline inflation falls, but its decline disappoints

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