Just when you thought it was safe to go on holiday: Britons flying off on Easter breaks may have caused most of the turbulence in April’s inflation data, analysts said Eyes Wide Open/Getty ImagesOfficial inflation figures came in below expectations, making an imminent interest rate rise less likely and sending sterling to a fresh low for the year. The annual consumer prices index dropped to 2.4 per cent in April from 2.5 per cent in March, undershooting forecasts that it would be unchanged. The Office for National Statistics said that it was the lowest reading since March last year, when inflation was surging due to the currency’s collapse after the Brexit referendum. Although the drop was good news for households —for whom incomes are rising in real terms after almost a year of deteriorating living standards — it hit markets. Sterling slipped 0.6 per cent to $1.3325, its lowest since December 21, and government borrowing costs fell on the…

Source: The Times May 23, 2018 10:52 UTC