UK CPI inflation cooled to 2.8% YoY in April from 3.3% in March, while core CPI slowed to 2.5% from 3.1%, with both measures posting their lowest readings since 2021 as disinflation in services and household energy costs outweighed another sharp jump in fuel prices.

• Monthly CPI rose 0.7% MoM, below the 1.2% MoM increase seen a year ago. Core CPI also rose 0.7% MoM (vs 1.4% MoM in April 2025).
• Services inflation slowed sharply to 3.2% YoY from 4.5%, while housing and household services inflation dropped to 1.4% from 5.3%, driven by falling electricity and gas prices after changes to the Ofgem price cap and UK energy bill support measures.
• Goods inflation, however, accelerated to 2.4% from 2.1%, with motor fuel inflation surging to 23.0% YoY, the highest since September 2022. Petrol prices rose 16.6p per litre in April, while diesel prices jumped 31.3p.
• Transport inflation eased only slightly to 4.5% despite the fuel surge, as declines in airfares and vehicle excise duty offset part of the energy shock. Airfares were distorted lower by Easter timing effects.
• Food inflation slowed to 3.0% from 3.7%, while recreation and culture inflation dropped to 1.7% from 2.8%, helped by softer package holiday pricing and falling computer game download prices.
• Clothing and footwear inflation rebounded sharply to 0.7% from -0.8%, reflecting fewer seasonal discounts compared with last year.