UK inflation falls to 14-month low despite Iran-driven fuel surge

UK inflation eased more than expected in April, falling to its lowest level in over a year as lower energy bills outweighed a sharp rise in fuel costs linked to tensions in the Iran war, official figures show.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation dropped to 2.8% in April, down from 3.3% in March – the lowest since March 2025 and below forecasts of 3%, Caliber.Az reports via foreign media.

The fall was mainly driven by lower electricity and gas bills after the energy regulator Ofgem reduced its price cap at the start of April, alongside earlier declines in global wholesale energy prices.

However, the ONS warned that rising oil prices following the Iran conflict are already pushing up fuel costs.

Grant Fitzner, chief economist at the Office for National Statistics, said: “There was a notable fall in annual inflation led by lower electricity and gas prices.

“This was due to the government’s energy bill support package reducing variable and fixed tariffs, along with lower global wholesale energy prices before the conflict in the Middle East, which fed through to the reduction in the Ofgem cap.

“Smaller rises in water and sewage bills and vehicle excise duty than seen last year also helped pull the rate down.

“Food prices, particularly for chocolate and meat products, and the price of package holidays drove inflation down further.

“These were only partially offset by a further increase in petrol and diesel prices, and an uptick in the cost of clothing and footwear.”

Fuel prices jumped in April, with petrol rising to 156.8p per litre and diesel hitting 190p per litre, both the highest levels since 2022.

Chancellor Rachel Reeves is expected to announce new cost-of-living measures this week as pressure builds from rising energy and fuel costs.