U.K. inflation drops, early Easter holidays credited

LONDON, U.K. – U.K. inflation reportedly reduced suddenly in April for the first time since September 2015.

According to reports, the data indicates that, in spite of rising oil prices in the past three months, inflation in developing countries remains subdued.

The Office of National Statistics reportedly said that consumer prices rose by 0.3 percent in April 2016 compared to April 2015, but still did not reach economists’ estimates of 0.5 percent.

Further, the Bank of England reportedly expects that inflation will remain well below 1 percent throughout the rest of 2016.

Reports state that statisticians credit the inflation drop to the timing of the Easter holidays, which occurred in March, earlier than in 2015, leading air fares to reduce by 14.2 percent between March and April.

Further, the price of clothing also reportedly reduced by 0.5 percent compared to the 0.9 percent in the same period in 2015.

It was added that the Chancellor of the Exchequer’s office claimed that the drop in inflation indicated that households would fare better with U.K. in the European Union.  

A spokesperson reportedly said, “It is clear Britain would be poorer outside the EU. To avoid putting our economic progress at risk we must continue with the plan that is building resilience and delivering rising living standards across Britain.”

On the contrary, British Trade Union Congress’s Frances O’Grady reportedly said that the low inflation was a sign “that the economy still lacks the demand needed to get back to full strength.”

Further, she added that “with the U.K. economy slowing down, the government cannot continue to stand by. We need investment in skills, infrastructure and public services to promote growth for the long term.”