UK inflation slides to 13-month low, stays elevated

LONDON, May 24 (AFP): Britain's annual inflation rate struck a 13-month low in April, official data showed Wednesday, but remains elevated at 8.7 per cent as soaring food prices offset weaker energy costs, prolonging a cost-of-living crisis.
The rate of price increases slowed from 10.1 per cent in March to below double digits for the first time since August last year, the Office for National Statistics said in a statement.
At 8.7 per cent, UK inflation is at the lowest level since March last year when the rate stood at 7.0 per cent, the ONS added.
"However, prices in general remain substantially higher than they were this time last year, with annual food price inflation near historic highs," noted ONS chief economist Grant Fitzner.
While energy prices have slumped on easing supply concerns thanks to warmer weather in Europe and as nations become less dependent on Russian oil and gas, food costs continue to soar.
UK food price inflation stood at 19 per cent in April, around the highest level in more than 45 years.
"Droughts and floods in Europe and elsewhere have been disrupting supply chains and pushing up prices of food stuffs," said Tom Lancaster, analyst at the Energy and Climate Intelligence Unit.
The price of gas, which is used to make fertiliser, remains high compared to before the Covid pandemic.
"Fertilisers applied to crops now will be adding to costs for food harvested later in the year," Lancaster added.
Central banks are battling elevated inflation by hiking interest rates.
Economists on Wednesday said the Bank of England was likely to raise borrowing costs again at its next meeting as the latest inflation figure was above the BoE's 8.4-per cent prediction.
Britain's annual inflation rate is the highest among countries in the Group of Seven rich economies featuring also Canada, France, Germany, Italy, Japan and the United States.