The UK’s price inflation fell back to 44-month low of 0.8% in April indicating how the Covid-19 lockdown is hitting the economy
Figures released this morning also showed producer prices dipped markedly, down 5.1% month-on-month & 9.8% year-on-year.
Major downward impacts from energy prices & fuel. Other significant downward impacts came from prices for transport services & clothing.
The largest monthly price increases came from takeaway and delivery pizzas and takeaway burgers .
Food prices overall fell by 0.1% between March and April this year.The largest upward contribution came from vegetables (including potatoes and tubers), where prices rose between March and April this year but fell between the same two months a year ago. This month’s price movements for vegetables could be a consequence of switching from internationally to domestically grown produce.
The slump in inflation will intensify speculation that the Bank of England could cut interest rates below zero