UK Inflation Eases After Drop in Home Energy Bills but Petrol Prices Still Rising
Economists expect CPI inflation to fall to 3% as Ofgem cuts the energy cap 7%, though petrol prices rose on Middle East tensions.
- Most economists expect the Consumer Price Index inflation rate eased to 3% in April, down from 3.3% in March, as energy costs for the average household fell.
- Ofgem lowered the energy price cap by 7%, equivalent to about £10 a month, for the average household, driven by Government measures moving 75% of renewables obligation costs to taxation.
- Victoria Scholar, head of investment for Interactive Investor, said the lower energy cap will "go some way towards helping offset higher petrol", while Brent crude traded at around 120 US dollars per barrel.
- Sanjay Raja, chief UK economist for Deutsche Bank, expects "price momentum to pick back up" as fuel prices rose by about 15% last month, with inflation expectations drastically rerated higher.
- From July, household energy bills are expected to jump when Ofgem resets its price cap, with Cornwall Insight predicting an increase of around 12% or £196 per year, while The Bank kept interest rates on hold.
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UK Inflation Falls Again as Energy Bills Drop but Fuel Prices Surge – April 2026 ONS CPI Report
The April 2026 inflation figures mark another step in the UK’s slow return toward price stability. According to the latest ONS release, both headline measures—CPIH and CPI—fell for the second consecutive month, driven largely by reductions in household energy bills.
ONS inflation eases as energy prices fall
Fall in Ofgem price cap brings overall inflation costs down The ONS has reported a decline in the overall inflation figure for April as a fall in energy prices and food costs takes some of the pressure off. AN easing in the energy price cap has helped to bring down overall inflation numbers, according to the latest data from the Office for National Statistics (ONS). Covering the 12 months to the end of April 2026, the overall consumer price inde…
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