UK Inflation Rate Declines to 2.8% Amid Energy Price Cap Changes

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The U.K. inflation rate decreased to 2.8% in April, according to preliminary data from the Office for National Statistics (ONS), down from 3.3% in March. This decline was influenced by an energy price cap from Ofgem and lower electricity and gas prices. However, economists predict ongoing price increases due to rising energy costs linked to geopolitical events. The Bank of England is contemplating a potential interest rate hike of 25 basis points, which may take the 'Bank Rate' to 4% at its July meeting, as the economy faces pressures from unemployment rising to 5%.