Lower air fares contribute to another fall in UK inflation

MarketsAssociated Press

Official figures show inflation in Britain eased closer to the Bank of England's target during April.

The Office for National Statistics said Wednesday that consumer prices were up 2.4 percent in the year to April, down from 2.5 percent the previous month.

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The fall was largely due to lower air fares related to the earlier Easter this year.

Inflation has fallen more sharply than expected in recent months and that's one reason why the bank did not raise interest rates again earlier this month.

Bank of England Governor Mark Carney said Tuesday that inflation is likely to rise in coming months as the recent pick-up in oil prices feeds into car fuel and home energy bills.

The bank is tasked with setting interest rates to achieve inflation of 2 percent.