Inflation fall only slight

SOARING food prices have seen UK inflation ease back far less than expected in April, keeping up the pressure on households and raising the spectre of yet more interest rate rises.

The Office for National Statistics said Consumer Prices Index (CPI) inflation fell to its lowest level for more than a year last month, at 8.7% down from 10.1% in March, as energy prices stabilised after sky-high rises a year ago.

But it was higher than forecast by economists, who had pencilled in a drop to 8.2% in April, and more than the Bank of England had predicted just two weeks ago.

The figures showed food inflation at 19.3%, down only slightly on March’s eye-watering 19.6% and remaining close to the highest rate for more than 45 years.