Prices had been easing in many areas in early 2026 – but the world has changedpublished at 08:30 BST
Dharshini David
Deputy economics editor
These figures give a tantalising glimpse into another
world. Take away the most volatile bills we face, the likes of food and energy, and so-called core inflation – covering items like clothes and days out
– dropped back to 2.5% in April.
It’s a
reminder of how price pressures had been easing in many areas in early 2026.
But the world has changed. Not only have higher diesel
and petrol prices added significantly to our cost of living but there’s more to come.
Just take a look at an another official measure, producer prices, which
looks at both the cost of raw materials and of items leaving factory gate.
There, growing price pressures are all too evident – they will likely hit our
shelves and pockets in the coming months.
But this month inflation figures, being slightly better
than expected, do underline expectations that inflation won’t get anywhere near
the rates we saw in the early stages of the war in Ukraine. First, because the
rise in commodity prices has been less marked.
And second, in a stretched
economy there is less capacity for inflation pressures to travel – both in the ability of companies to put up
prices, and the ability of workers to score higher pay rises.
