UK inflation falls to 2.3%, lowest level in nearly 3 years but still above Bank of England's target

abcnews.go.com:

Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills

LONDON — Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed Wednesday.

The Office for National Statistics said inflation, as measured by the consumer prices index, fell to 2.3% in the year to April, down from 3.2% in March.

That is the lowest level since July 2021 when the global economy was still being held back by the coronavirus pandemic. The fall also takes inflation nearer to the Bank of England's target rate of 2% and is likely to pile pressure on its nine-member rate-setting panel to cut interest rates from the current 16-year high of 5.25%.

The next rate meeting is on June 20 and many economists think the bank will cut borrowing costs. However, others think that ongoing concerns over the scale of price rises in the crucial services sector and the pace of wage increases make an August reduction more likely.

Though the latest fall in inflation is welcome, it didn't drop as far as some economists had hoped. It also doesn't mean the cost of living crisis — the worst in around 40 years — is over. Lower inflation, after all, just shows that prices are rising more slowly than they were before.

Inflation hit a high above 11% at the end of 2022 in the wake of Russia’s invasion of Ukraine, which led to sharp increases in energy costs.

Over the past couple of years, goods and services have risen by 15%, with food prices up even more at around 25%.

The Bank of England, like the U.S. Federal Reserve and other central banks around the world, raised interest rates aggressively in late 2021