UK CPI inflation falls to 2.1% in April
Headline inflation edged closer to the Bank of England's 2% target, with goods prices broadly flat and services inflation easing.
By Money Guide editorial team
Published:
The Office for National Statistics reported that the Consumer Prices Index rose 2.1% in the 12 months to April 2026, down from 2.4% in March and the lowest reading since mid-2024.
The biggest downward contributions came from motor fuels, second-hand cars and household goods, while restaurants, hotels and personal services continued to push the index higher.
For savers, the practical impact is that a typical easy-access account paying around 4% is now delivering a real return of nearly 2 percentage points — the strongest sustained position for cash since 2015. For borrowers on tracker deals, lower inflation strengthens the case for further base-rate cuts later in the year.
CPIH, which includes owner-occupier housing costs, came in at 2.7% — closer to many households' lived experience of bills and rent.