"Annual CPI inflation fell from 3.1% inflation in March to 2.8% in April, while RPI annual inflation eased from 4.8% in March to 4.5% in April. It is particularly important that annual CPI "core inflation" (excluding energy, food, alcoholic beverages & tobacco) has also come down, from 1.9% to 1.8%, and remains below 2%.
"The figures published this week support the findings of our Quarterly Survey published last month, which indicated that business pricing power is no longer increasing, and may well has started to diminish. While we accept that further tightening may eventually be necessary, the new figures support our call for restraint and for avoiding harmful overkill. The MPC should keep interest rates on hold for the time being"