20 May 2026
April's slowdown in the rate of inflation is likely to be a 'temporary quirk' rather than a 'signal on the direction of travel', says the British Chambers of Commerce.
The UK's inflation rate fell to 2.8% in the year to April, according to the latest data from the Office for National Statistics (ONS).
That is a 0.5 percentage point fall from the 3.3% recorded in the 12 months to March.
The ONS said the fall was led by led by lower electricity and gas prices due to the government's energy bill support package.
However, the annual cost of both raw materials and goods leaving factories continued to rise, driven again by higher crude oil and petrol prices.
Caterina Batog, Research & Economics Analyst, at the BCC, said: 'Today's fall in inflation is unlikely to encourage the Bank of England to consider further interest rate cuts. The trajectory of the conflict in Iran and energy prices will be key factors in determining the Bank's next decision.
'Cutting rates risks embedding inflation, but at a time when business confidence is already depressed, keeping them higher for longer could pile more pressure on firms.
'Decisive action is needed by government to show it understands the economic reality that businesses are facing. It must ease the cost burdens firms face including steps to reduce electricity bill levies and reform of business rates.'