UK Inflation Drops to 8.7% in April, Beating Expectations

UK inflation dropped to 8.7% YoY in April, down from 10.1% in March, due to a retreat in energy prices and the impact of Russia's invasion of Ukraine dropping out of the annual consumer price comparison. However, food and non-alcoholic beverage prices continued to rise, contributing to high annual inflation. The Bank of England is concerned about core CPI rising to 6.8% in April, up from 6.2% in March. Economists expect a further interest rate hike at the next meeting as inflation remains stickier in the UK than in comparable major economies.