The war between Russia and Ukraine — both major producers of food commodities and energy — has disrupted global production, trade and supply in these areas, leading to a surge in prices.
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U.K. inflation fell to 2.3% in April, the Office for National Statistics said on Wednesday, coming closer to the Bank of England’s target rate even while missing expectations.
The headline reading declined from 3.2% in March, but economists polled by Reuters had expected a steeper drop to 2.1%.
Core inflation, excluding energy, food, alcohol and tobacco, dipped to 3.9% in April from 4.2% in March.
Investors are keenly watching the print, after BOE policymakers indicated they would be willing to cut interest rates some time in the summer, but stressed that the timing will depend on fresh data.
Services inflation, a key measure being watched by the BOE, eased only slightly to 5.9% from 6% — also missing a forecast of 5.5% from the British central bank.
This is a breaking news story and will be updated shortly.