CPI inflation falls to 2.3%

CPI inflation falls to 2.3%

22 May 2024

Danny Vassiliades, Partner at XPS Pensions Group, commented: “The ONS has today announced that CPI inflation fell to 2.3% in the year to April 2024, the lowest annual rate since July 2021. All eyes are now turning to the potential timescale of interest rate cuts, with hopes buoyed by the deputy governor of the Bank of England’s comments that summer cuts are “possible”.

Falling inflation represents good news for many private sector defined benefit members who have recently experienced inflation above their maximum guaranteed pension increases for the first time in decades. With the lowest such guarantees typically around 2.5%, defined benefit pensioners will be hoping that inflation remains at its current levels to protect against a repeat of the real income cuts they have experienced over the last two years.”