The rate of inflation is finally back in single digits for the first time since last summer, easing to 8.7% last month – but food inflation remains near 20% and core price inflation is at a 30-year high.
The Office for National Statistics (ONS) said the decline in the consumer prices index measure (CPI) was mainly driven by gas and electricity costs remaining stable in April when compared with the unprecedented leap recorded in the same month last year.
April last year saw the energy price cap lifted by 54% to £1,971 to reflect, for the first time, the impact of Russia’s war in Ukraine on European gas and electricity supplies.
Energy costs have been the main source of the cost of living crisis since the invasion, fuelling not only household energy bills but also manufacturing and transport prices, which continue to filter through the economy.
But while the pace of price rises slowed, it did not fall as much as economists polled by Reuters and the Bank of England expected. A rate of 8.2% had been forecast by economists while 8.4% was expected by the Bank.
And there is no great relief in the squeeze on family budgets because earnings continue to lag the pace of price rises. While the rate of inflation has eased, it doesn’t mean prices are coming down, they are still rising.
Food inflation stood at 19.1% in April, a slight decrease from 19.2% in March.
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1:10
Jeremy Hunt: ‘No room for complacency’ over inflation battle
The Bank of England has been trying to combat upwards pressure on prices through interest rate hikes to dampen demand in the economy.
There is much speculation on whether the Bank rate will be raised further next month following 12 consecutive increases.
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In its latest assessment of the UK economy, the International Monetary Fund suggested more rate rises were needed as it significantly upgraded its expectations for economic growth.
The Bank is worried about stubborn core inflation, which strips out volatile elements such as fuel and food.
That core rate of inflation rose to 6.8% last month, the highest since 1992 and up from 6.2% in March. The rate was expected to stay the same.
There is concern too among rate-setters that inflation-fighting pay awards risk fuelling price growth ahead.
Chancellor Jeremy Hunt said: “The IMF said yesterday we’ve acted decisively to tackle inflation but although it is positive that it is now in single digits, food prices are still rising too fast.
“So as well as helping families with around £3,000 of cost of living support this year and last, we must stick resolutely to the plan to get inflation down.”
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2:14
IMF expects UK to avoid recession
Economists see the inflation rate easing further as the year progresses, in line with a government target to halve inflation, but say there are risks associated with the looming winter due to continuing energy supply constraints.
A recent forecast by Pantheon Macroeconomics showed CPI inflation likely to be stable this month but slowing to 7.3% in June and hitting 3.3% in December, reflecting falls in wholesale energy costs over the year to date compared with the stampede for prices seen during 2022.
Energy regulator Ofgem is tipped to reveal on Thursday that the price cap will fall to £2,053 per year from July to September.
That is down from the £3,280 level set for March to June, which was largely irrelevant as the government’s Energy Price Guarantee was in place.
A Royal Navy patrol ship has intercepted two Russian vessels off the UK coast, the Ministry of Defence has said.
It comes after Defence Secretary John Healey announced last Wednesday that lasers from Russian spy ship the Yantar were directed at RAF pilots tracking it, in an attempt to disrupt the monitoring.
The MoD said on Sunday that in a “round-the-clock shadowing operation”, the Royal Navy ship HMS Severn has intercepted Russian warship RFN Stoikiy and tanker Yelnya off the UK coast in the past fortnight.
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Russian ship ‘directed lasers at our pilots’
The Russian vessels sailed through the Dover Strait and westward through the English Channel, the MoD said.
HMS Severn later handed over monitoring duties to a NATO ally off the coast of Brittany, France, it said, but continued to watch from a distance and remained ready to respond to any unexpected activity.
The ministry added that the UK’s armed forces are on patrol “from the English Channel to the High North” amid increased Russian activity threatening UK waters.
At a news conference in Downing Street on Wednesday, Mr Healey said the spy ship was on the edge of British waters north of Scotland, having entered wider UK waters over the last few weeks.
He said it was the second time this year the Yantar had been deployed off the UK coast and he claimed it was “designed for gathering intelligence and mapping our undersea cables”.
Image: HMS Severn tracking of Russian corvette RFN Stoikiy and tanker Yelnya off the UK coast. Pic: MoD
Mr Healey said the ship had “directed lasers” at pilots of a P-8 surveillance aircraft monitoring its activities – a Russian action he deemed “deeply dangerous”.
In a clear message to Russian President Vladimir Putin, the defence secretary said: “We see you. We know what you are doing. And we are ready.”
The ministry said while tracking the Yantar, Royal Navy frigate HMS Somerset and other civilian ships in the area “experienced GPS jamming in a further demonstration of unprofessional behaviour, intended to be disruptive and a nuisance”.
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2:40
What is Russian spy ship up to?
Russia’s UK embassy dismissed the accusations and insisted the Yantar is a research ship in international waters.
The defence secretary also repeated government plans to increase defence spending and work with NATO allies to bolster European security.
And he stressed how plans to buy weapons and build arms factories will create jobs and economic growth.
Image: HMS Somerset flanking Russian ship the Yantar near UK waters on 22 January 2025. File pic: Royal Navy/PA
A report by a group of MPs, also released on Wednesday, underlined the scale of the challenge the UK faces.
It accused the government of lacking a national plan to defend itself from attack.
The Defence Select Committee also warned that Mr Healey, the prime minister and the rest of the cabinet are moving at a “glacial” pace to fix the issue and are failing to launch a “national conversation on defence and security” – something Sir Keir Starmer had promised last year.
Image: Russian ship the Yantar transiting through the English Channel. File pic: MoD
The UK has seen a 30% increase in Russian vessels threatening UK waters in the past two years, according to the MoD.
But the ministry maintained the UK has a wide range of military options at its disposal to keep UK waters safe.
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Three RAF P-8 Poseidon aircraft have deployed to Keflavik Air Base in Iceland in the largest overseas deployment of the RAF P-8 fleet so far, the MoD said.
They are conducting surveillance operations as part of NATO’s collective defence, patrolling for Russian ships and submarines in the North Atlantic and Arctic.
The operations come just weeks after HMS Duncan tracked the movements of Russian destroyer Vice Admiral Kulakov, and frigate HMS Iron Duke was dispatched to monitor Russian Kilo-class submarine Novorossiysk.
West Midlands Police has defended the ban on Maccabi Tel Aviv fans attending an Aston Villa match after it was claimed that false intelligence was used.
Supporters of the Israeli club were barred from the Europa League fixture at Villa Park on 6 November.
West Midlands Police chief superintendent Tom Joyce told Sky News before the game that a “section” of Maccabi’s fanbase engaged in “quite significant levels of hooliganism”.
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2:28
‘Hooliganism’ blamed for Maccabi Tel Aviv ban
According to The Sunday Times, West Midlands Police claimed in a confidential dossier that when Maccabi played Ajax in Amsterdam last year, Israeli fans threw “innocent members of the public into the river”, and added that between 500 and 600 supporters had “intentionally targeted Muslim communities”.
The report also said 5,000 Dutch police officers had been deployed in response.
However, the Netherlands’ national police force has questioned the claims, reportedly describing information cited by its British officers as “not true” and in some instances obviously inaccurate.
Sebastiaan Meijer, a spokesman for the Amsterdam division, told The Sunday Times that he was “surprised” by allegations in the West Midlands Police report, which had linked 200 travelling supporters to the Israel Defence Forces (IDF).
Mr Meijer denied that his force had such intelligence, adding that the claim was meaningless given the country had a policy of conscription.
Also, Mr Meijer said that Amsterdam’s force “does not recognise” the claim in the British report, attributed to Dutch law enforcement, that Israelis were “highly organised, skilled fighters with a serious desire and will to fight with police and opposing groups”.
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3:09
Heavy police presence for Aston Villa v Maccabi Tel Aviv
The Dutch police added that the only known case of a fan being in the river appeared to involve a Maccabi supporter. While being filmed, he was told he could leave the water on the condition that he said “Free Palestine”.
In an interview with Sky News before the game, West Midlands Police referenced disorder when Maccabi played Ajax in Amsterdam last November.
Mr Joyce said ahead of the Villa Park match: “We’ve had examples where a section of Maccabi fans were targeting people not involved in football matches, and certainly we had an incident in Amsterdam last year which has informed some of our decision-making.
“So it is exclusively a decision we made on the basis of the behaviour of a sub-section of Maccabi fans, but all the reaction that could occur obviously formed part of that as well.”
Image: Pro-Israel supporters are led away from Villa Park before a Europa League tie on 6 November. Pic: PA
Maccabi’s visit to Birmingham came amid heightened tensions due to Israel’s war on Hamas in Gaza.
A safety advisory group (SAG) recommended that Maccabi fans should be banned from attending the fixture on the advice of the police. The ban drew criticism, and Prime Minister Sir Keir Starmer said it was the “wrong decision”.
Image: Mounted police outside Villa Park for the game. Pic: PA
West Midland Police’s statement in full
Following The Sunday Times report, West Midlands Police stood by its “information and intelligence”, adding that the “Maccabi Fanatics… posed a credible threat to safety”.
In a statement to Sky News, the force said: “West Midlands Police’s evaluation was based primarily on information and intelligence and had public safety at its heart.
“We assessed the fixture between Ajax and Maccabi Tel Aviv in Amsterdam as having involved significant public disorder.
“We met with Dutch police on 1 October, where information relating to that 2024 fixture was shared with us.
“Informed by information and intelligence, we concluded that Maccabi Tel Aviv supporters – specifically the subgroup known as the Maccabi Fanatics – posed a credible threat to public safety.
“The submission made to the SAG safety advisory group was based on information and intelligence which helped shape understanding of the risks.
“West Midlands Police commissioned a peer review, which was conducted by UKFPU [United Kingdom Policing Unit], the NPCC [National Police Chiefs’ Council] and subject matter experts.
“This review, carried out on 20 October, fully endorsed the force’s approach and decision-making.
“We are satisfied that the policing strategy and operational plan was effective, proportionate, and maintained the city’s reputation as a safe and welcoming place for everyone.”
The watch, which had remained in the couple’s family, was sold at Henry Aldridge & Son Auctioneers in Devizes, Wiltshire.
The £1.78m for the item is the highest amount ever paid for Titanic memorabilia, according to the company.
A letter written by Mrs Straus on Titanic stationery and posted while onboard the ship fetched £100,000.
The previous record was set last year when another gold pocket watch presented to the captain of a boat that rescued over 700 passengers from the liner sold for £1.56m.