"Everyone knew April’s figures weren’t going to be pretty, so a 0.6% drop, whilst shocking, is by no means unprecedented."
CPIH - the ONS' headline measure which includes owner occupiers’ housing costs - fell by 0.6% over the month, largely due to falling energy and fuel pump prices.
Rising prices for recreational goods resulted in a partially offsetting upward contribution to change.
The Consumer Prices Index (CPI) 12-month rate was 0.8% in April 2020, down from 1.5% in March.
Richard Pearson, director at investment platform, EQi, commented: “Everyone knew April’s figures weren’t going to be pretty, so a 0.6% drop, whilst shocking, is by no means unprecedented.
“According to the ONS, dropping energy and fuel costs were a major contributor over the previous month. This trend is likely to continue while office buildings remain unpopulated, in fact some experts are predicting the UK will enter a deflationary environment by the end of the year.
“A bounce back when restrictions on shops, pubs and restaurants are eventually lifted presents some much-needed hope for the economy, although it may take time for this to be felt. It won’t all be doom and gloom, but the immediate outlook for savers remains unchanged. Staying committed to the long-term game continues to be in peoples’ best interests at this point.”
