UK CPI April 2026 Inflation Update

UK CPI inflation dropped to 2.8% in April 2026, driven by a lower energy price cap and Easter-related services timing, but underlying pressures from high oil prices remain.

Key Takeaways

• 1.UK headline CPI inflation fell to 2.8% in April, lower than expected, with core inflation easing to 2.5%.
• 2.The fall was largely driven by temporary factors, specifically the Ofgem energy price cap decline and volatile services components like airfares due to Easter timing.
• 3.Inflation is expected to reaccelerate above 3% in the summer as the energy price cap resets higher and indirect effects of oil price surges filter through supply chains.

Table of Contents

• UK CPI (Apr-26): Inflation falls to 2.8% in April
• Inflation falls despite rising fuel prices
• Energy effects remain the dominant underlying driver
• Too early for indirect effects to fully materialise
• Updated forecasts and policy implications
• Table 1: UK Inflation forecasts
• Market Insights Team
• Disclaimer

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