Reported by Robyn Hall – The Negotiator
Headline inflation tumbled to 2.3% in the 12 months to April – the lowest level since July 2021– as the cost-of-living crisis begins to subside.
The rate of inflation dropped to 2.3% in April – down from 3.2% in March and the lowest level in almost three years, the Office for National Statistics (ONS) said this morning.
The drop in the consumer prices index was driven by amongst others falling energy and food costs. But while hopes of an interest rate cut from the Bank of England when it next meets on June 20 remain, some City analysts and other experts have already started to cut back their expectations.
EXTREMELY POSITIVE
Nathan Emerson, Chief Executive, Propertymark
Nathan Emerson, Chief Executive of Propertymark, was more sanguine and says: “It’s extremely positive to see inflation take a further dip downwards, after what has been an extremely challenging few years for many households.
“Over the coming months we are optimistic to see the Bank of England respond to today’s news by lowing the base rate. For many this will be a much-welcomed relief regarding household affordability and give people a new flexibility to approach the housing market with greater confidence.”
Tim Bannister, Director of Property Science, Rightmove
Tim Bannister, Rightmove’s Property Expert, says: “While today’s number is a little higher than economists forecast, it is a move in the right direction.
“It always takes time for people to feel the benefits of lower inflation, but the downward trajectory of inflation is good for the health of the market.
“Affordability has been tightly squeezed over the last couple of years as rates have gone up, however determined movers have continued to find a way.
“There are positive signs, including a stronger spring market than last year, however we still have more than half the year to go, and an election to come at some point, so it’s not smooth sailing yet.”
