The UK's inflation rate dropped to its lowest level since spring 2025 in April, driven by falling energy costs, cheaper air travel, and easing prices for everyday groceries such as chocolate, coffee, and rice.
Energy bills see sharp decline
Electricity bills in April were on average 6.0% lower than a year earlier, a stark reversal from March when they had risen by 5.6% year on year. Gas bills also fell further, dropping 13.5% annually compared to a 2.8% decline in March. These reductions follow Ofgem's decision to lower the energy price cap by 7% from the start of April, equivalent to a £10 monthly saving for an average dual-fuel household, in response to government measures aimed at cutting household bills.
Air fares and groceries contribute to easing
A steep drop in air fares also helped moderate the overall inflation rate. The average cost of air travel fell 13.2% year on year in April, after a 14.5% increase in March, reflecting the earlier timing of Easter holidays in 2026. A wide range of groceries recorded smaller annual price increases than in March, including chocolate, mineral water, ready meals, coffee, meat, tea, rice, and bread. Similarly, ticket prices for cinemas, theatres, concerts, and museums rose less sharply, while train fares swung from a 1.9% annual increase in March to a 0.2% decline in April. Water and sewerage bills also saw smaller rises compared to a year ago.
Fuel costs surge amid Iran war impact
These disinflationary forces more than offset the upward pressure from a sharp rise in fuel costs. The average price of petrol in April was 16.6% higher than a year earlier, up from a 2.0% annual increase in March. Diesel saw an even larger jump, from 9.6% in March to 34.1% in April. These increases reflect the ongoing impact of the Iran war, which began in late February and caused a spike in crude oil prices during March, raising the cost of filling up at the pumps.
Other items with accelerating inflation
Inflation also accelerated for a handful of everyday groceries, including pasta (up 6.1% annually in April vs 4.4% in March), fish (5.7% vs 4.5%), potatoes (1.5% vs 0.5%), and breakfast cereals (not specified). The cost of staying in hotels and similar accommodation rose 3.8% year on year in April, compared to a 0.8% increase in March.
Examples of easing inflation (March vs April annual rates)
- Passenger air travel: +14.5% to -13.2%
- Water supply: +26.4% to +9.0%
- Electricity: +5.6% to -6.0%
- Gas: -2.8% to -13.5%
- Margarine: +3.1% to -1.4%
- Chocolate: +10.9% to +7.8%
- Mineral water: +9.4% to +6.3%
- Ready-made meals: +6.7% to +3.9%
- Coffee: +9.0% to +6.3%
- Cinemas, theatres, concerts: +7.4% to +5.2%
- Meat: +5.8% to +3.6%
- Tea: +6.7% to +4.6%
- Bread: +3.3% to +2.0%
Examples of accelerating inflation (March vs April annual rates)
- Diesel: +9.6% to +34.1%
- Petrol: +2.0% to +16.6%
- Hotels/other accommodation: +0.8% to +3.8%
- Sauces, spices & culinary herbs: +2.6% to +4.9%
- Pasta & couscous: +4.4% to +6.1%
- Men’s clothes: +0.2% to +1.6%
- Fish: +4.5% to +5.7%
- Crisps: +0.3% to +1.5%
- Women’s clothes: +0.9% to +2.0%
- Potatoes: +0.5% to +1.5%
