Boost to households as inflation expected to ease by two per cent as energy prices drop
INFLATION is expected to ease by two per cent this week — providing much-needed relief for hard-pressed households.
Falling energy costs means punishing price rises could be coming to an end with the predicted dip the biggest monthly fall in two years.
Economists expect official data released on Thursday to show the consumer price index fell from 10.1 per cent to around 8.2 per cent in April.
The Office for National Statistics tracks price rises using a basket of 700 everyday items — from grocery staples to fuel and heating.
Inflation has soared to a 45-year high with the Bank of England blaming shocks from Covid-related supply issues and war in Ukraine.
The biggest driver over the past year has been energy prices as President Vladimir Putin weaponised Russia’s gas supplies to Europe.
Prices rocketed six-fold but they have since fallen.
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As a result, energy regulator Ofgem is set to say on Wednesday that the energy price cap will fall from £2,500 to £2,053 in July.
This will mean households will save £450 a year.
But food inflation is still high at 19 per cent — with milk, pasta, bread and veg costs rocketing.
Experts say households lost £5,455 to inflation over the past two years.
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Chancellor Jeremy Hunt will today meet with food manufacturers to discuss why prices are “proving stubborn” to come down.