Lower gas and electricity bills behind UK inflation fall to 2.8%

Lower gas and electricity bills were behind a bigger than expected drop in the UK's inflation rate, official figures show.

The rate of inflation, which measures price rises over time, fell to 2.8% in the year to April, down from 3.3% in the year to March.

Energy prices were lower due to the government's energy bill support package and lower wholesale energy prices before the Iran war, the Office for National Statistics (ONS) said.

There were also smaller rises in water and sewage bills as well as car tax compared to last year, ONS chief economist Grant Fitzner said.

A lower rate of inflation does not mean prices are falling across the board, but that prices are rising more slowly than previously.

The fall in inflation occurred despite the rise in fuel prices due to the Iran war. In April, the price of petrol reached 158.31p, the ONS said.

Fitzner said there was also an increase in the cost of clothing and footwear.

"The annual cost of both raw materials and goods leaving factories continued to rise, driven again by higher crude oil and petrol prices," he said.

Chancellor Rachel Reeves said decisions taken in the Budget last year had "kept inflation down as we deal with global instability".

"We have already taken £117 off energy bills, frozen rail fares, and lifted the two-child limit, and over today and tomorrow I'll set out the next phase of how we will support UK households," she added.

However, analysts expect inflation to rise through the rest of the year as the US-Israel war with Iran continues to impact the global prices.