UK consumer price growth slowed more than forecast in April

According to the report from Office for National Statistics, the Consumer Prices Index (CPI) 12-month rate was 0.8% in April 2020, down from 1.5% in March.Economists had expected a 0.9% increase.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) 12-month inflation rate was 0.9% in April 2020, down from 1.5% in March 2020. The largest contribution to the CPIH 12-month inflation rate in April 2020 came from recreation and culture (0.31 percentage points). Falling energy and fuel pump prices resulted in the largest downward contributions to the change in the CPIH 12-month inflation rate between March and April 2020. Rising prices for recreational goods resulted in a partially offsetting upward contribution to change.

A separate report from ONS showed that the headline rate of output inflation for goods leaving the factory gate was negative 0.7% on the year to April 2020, down from 0.3% in March 2020.

The price for materials and fuels used in the manufacturing process displayed negative growth of 9.8% on the year to April 2020, down from negative growth of 3.1% in March 2020.

Petroleum products made the largest downward contribution to the change in the annual rate of output inflation.

Crude oil provided the largest downward contribution to the annual rate of input inflation.

Crude oil prices have seen a record fall on the month and the year, driven by factors including reduced global demand during the coronavirus (COVID-19) pandemic and oversupply after Organization of the Petroleum Exporting Countries plus group (OPEC+) failed to cut production in March and April 2020.