UK inflation has fallen to 2.8% in the year to April, down from 3.3% in March, largely due to lower gas and electricity bills aided by government support and falling wholesale energy costs.

Despite this temporary relief, analysts predict inflation could rise to around 4% later in the year, influenced by ongoing tensions in the Middle East and rising global fuel prices.Petrol and diesel prices have surged, reaching levels not seen since 2022, which is expected to drive up costs for households and businesses.The government plans further measures to help consumers, including energy bill support and other cost-of-living initiatives.While the reduction in inflation signals slower price rises, it does not mean prices are falling across the board.Food and drink prices have eased slightly but remain under pressure, with some forecasts suggesting food price inflation could reach 10% by year-end.

The Bank of England faces mixed signals in deciding interest rate adjustments, as much of the inflationary pressure stems from international factors such as oil prices.Economists caution that this temporary dip in inflation is unlikely to last and the UK economy may face further cost pressures in the coming months.