Europe · Business news · Economy · 20 May 2026
EU Utilities Energy Consumer Discretionary
UK consumer price inflation fell to 2.8% in April 2026 from 3.3% in March. Electricity prices dropped 8.4% and gas 4.4% on the month after Ofgem lowered its price cap to £1,641 a year for a typical household, a £117 cut, and smaller water-bill increases also helped. Motor fuels pushed the other way, with petrol at 156.8p and diesel at 190.0p a litre. Core inflation slowed to 2.5% from 3.1% and services inflation to 3.2% from 4.5%.
Because Ofgem resets the cap only periodically, the jump in wholesale gas prices had not yet reached household bills, leaving UK inflation below the euro area's in spring and allowing the Bank of England to keep Bank Rate at 3.75% while the ECB moved to tighten. Lower utility bills supported real incomes and retail spending, while hauliers and fuel retailers absorbed higher diesel costs. Energy suppliers such as Centrica, owner of British Gas, operate within the cap's cost pass-through.
Reported by Office for National Statistics — “Consumer price inflation, UK: April 2026” ↗ on 20 May 2026.
Official series on 20 May 2026 or the last day before it, and the latest observation.
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