Inflation drops back by more than forecast as energy offsets Iran war fuel hit

Inflation fell back sharply to its lowest level for more than a year last month (Alamy/PA) -

Inflation fell back to its lowest level for more than a year last month as a drop in energy prices offset soaring fuel costs, but fears are mounting over a looming cost-of-living squeeze caused by the Iran war.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation fell to 2.8% in April, down from 3.3% in March – and the lowest level since March 2025.