The UK inflation rate in April dropped by less than anticipated, casting doubt on the Bank of England’s plan to reduce interest rates in the coming months. This development could potentially provide a boost for Prime Minister Rishi Sunak, who is currently facing challenges. The Office for National Statistics reported that consumer prices in the UK increased by 2.3% on an annual basis, a decline from the 3.2% rise in March and the lowest level since July 2021 when it was at 2.0%. Both the Bank of England and economists surveyed by Reuters had predicted a larger decrease to 2.1%. Furthermore, services inflation, which is closely monitored by the Bank of England to gauge domestic price pressures, was stronger than expected at 5.9%, surpassing the Bank of England’s forecasts and the Reuters poll, which had projected a reading of 5.5%. As a result of this data, the value of the British pound increased.