UK inflation slowed to the lowest since 2016 on weak oil prices in April, data from the Office for National Statistics showed Wednesday.
Consumer price inflation eased to 0.8 percent in April from 1.5 percent in March. Economists had forecast the rate to ease to 0.9 percent. The latest
rate was lowest since August 2016. Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to 1.4 percent in
April from 1.6 percent in March. On a monthly basis, consumer prices dropped 0.2 percent after remaining flat in March. Prices were forecast
to drop 0.1 percent.
Another report from the ONS showed that output prices declined for the first time since June 2016.
Output prices decreased 0.7 percent annually in April reversing a 0.3 percent rise in March. Economists had forecast a 0.4 percent decrease. On
month, output prices fell 0.7 percent after falling 0.2 percent in March. This was also faster than the expected -0.5 percent. At the same
time, input prices declined the most since December 2015. Input producer price inflation was driven mostly by commodity prices, the ONS
said. Prices plunged 9.8 percent on year versus March's 3.1 percent decrease. Economists had forecast 8.7 percent annual fall. On a monthly
basis, input prices logged its biggest fall on record. Prices fell 5.1 percent after falling 3.8 percent in March. Input prices were
forecast to decrease 4 percent.