Inflation falls to 2.8% in April but Rachel Reeves braces Britain for it to spike in coming months

UK inflation dropped to 2.8% in April, according to the Office for National Statistics, marking a larger-than-expected decline from 3.3% in March. The reduction was primarily driven by Ofgem’s 7% cut to the energy price cap, saving households an average of £10 per month on combined electricity and gas bills. However, Chancellor Rachel Reeves cautioned that inflation could rise due to global instability, including tensions in the Strait of Hormuz linked to the Iran war. The government announced a relaxation of sanctions on Russian crude oil, allowing imports of jet fuel and diesel refined in third countries to prevent summer travel disruptions. This reverses a previous ban on Russian oil refined abroad, aiming to mitigate surging fuel costs. Conservative leader Kemi Badenoch criticized the move as inconsistent with the UK’s stance against Putin, calling it 'insane' after 18 months of sanctions enforcement. Reeves emphasized the government’s economic plan, citing £117 reductions in energy bills, frozen rail fares, and lifted child benefit caps as measures to support households. She ruled out reversing recent budget decisions, warning that changes could destabilize the economy. Meanwhile, Treasury Minister Dan Tomlinson denied reports of government pressure on supermarkets to cap prices on essentials like milk, eggs, and bread, though the Financial Times suggested incentives—such as eased packaging rules—could be offered in exchange for voluntary price controls. The British Retail Consortium (BRC) urged the government to address public policy costs driving up food inflation, which hit 3.7% in April. CEO Helen Dickinson opposed price controls, arguing they would force retailers to sell goods at a loss. Shadow Chancellor Sir Mel Stride criticized Labour’s economic management, linking rising borrowing costs to leadership instability and warning of a '£300 Burnham Penalty' for families.