The annual inflation rate in the UK slowed to 2.8% in April 2026 from 3.3% in March, coming in below market expectations of 3.0% and marking the lowest reading since March last year. The moderation was mainly driven by a sharp slowdown in housing and household services inflation (1.4% vs 5.3% in March), following the introduction of an energy price cap by the UK’s energy regulator on April 1. Transport costs also rose at a softer pace (4.5% vs 4.7%), as a downward effect from vehicle excise duty (VED) partly offset surging motor fuel prices, which climbed 23%, the highest annual increase since September 2022. Inflation also eased for food and non-alcoholic beverages (3.0% vs 3.7%), health (2.4% vs 3.1%), and recreation and culture (1.7% vs 2.8%). Meanwhile, prices rebounded for clothing (0.7% vs -0.8%) and furniture and household goods (0.5% vs -0.4%). On a monthly basis, consumer prices increased by 0.7% in April, matching the pace recorded in the previous period.