UK inflation falls but Iran war fears fuel warnings of summer surge

• UK annual consumer price inflation decreased to 2.8 per cent in April from 3.3 per cent in March, marking the first fall this year.
• This decline is largely attributed to government measures that temporarily lowered household energy costs.
• Economists warn that this drop is likely a temporary reprieve, forecasting inflation could surge to 4 per cent or even 5 per cent by summer.
• The anticipated rise is linked to the full effects of the Iran war, which is expected to drive up fuel and food prices.
• Chancellor Rachel Reeves acknowledged the impact of the war and defended the government's economic plan, saying that it aims to maintain stability.

IN FULL

UK inflation falls to 2.8% – but experts warn far higher price rises on the way