FTSE 100 Live May 24: Inflation still higher than expected; Marks & Spencer results

Inflation is still much higher than expected

Inflation eased in April but was still well above economists’ expectations at 8.7%.

It was widely expected that the consumer price index, which measures price increases year-on-year, would fall significantly as the rapid rise in energy prices last April was no longer factored into the calculation.

Food and beverage inflation eased slightly but was still extremely high at 19.1%.

The core CPI, which excludes the more volatile food and energy prices, actually rose to 6.8%, the highest since March 1992.

ONS Chief Economist Grant Fitzner said: “Inflation fell significantly as last year’s large energy price hikes were not repeated in April but were partially offset by increases in used car and cigarette prices.”

“However, prices generally remain significantly higher than around this time last year and annual food price inflation is near historic highs.”