UK inflation slowed to 2.8% in April, the lowest level in more than a year. Lower household energy bills helped ease the rise in prices across the country. The Office for National Statistics said inflation fell from 3.3% in March. This was better than forecasts, which expected a smaller drop to 3%. It is also the lowest rate since March 2025. The main reason was a fall in the energy price cap set by Ofgem. This cut average annual dual fuel bills to £1,641 from April. That is a fall of £117 for typical households. Electricity prices dropped by 8.4% in April, the data showed. Fuel prices at petrol stations still rose fast due to global oil shocks. These shocks are linked to the conflict in the Middle East and Iran. The war raised fears over energy supply routes and oil transport. Brent crude briefly passed $110 per barrel during the period. Rising costs at the pump were the fastest in nearly four years. However, inflation still came in lower than many experts expected. Services inflation, a key measure of price pressure, fell to 3.2%. This was the lowest level for services inflation since January 2022. Core inflation, which removes food and energy, also eased to 2.5%. Water bills and vehicle tax rose less than in the previous year. Air fares and holiday package prices dropped by 3.3%. Chancellor Rachel Reeves said lower inflation shows policy is working. She said earlier budget changes helped keep energy costs lower. She also said global instability is affecting the UK economy. She plans new cost of living support measures later this week. These may include changes to fuel duty and other household costs. Economists warn the drop in inflation may not last long. Petrol and diesel prices have risen again in recent weeks. Producer price inflation rose sharply to 7.7% in April. This shows higher costs for goods made by UK factories. The main driver was a 75% jump in crude oil costs. These higher costs may soon be passed on to consumers. Experts expect inflation could rise again to around 4% this summer. The household energy price cap is also expected to rise in July. It could increase by around 13% to £1,850 per year. The Bank of England now faces a difficult policy choice. It must balance inflation control with support for economic growth. Interest rates were held at 3.75% at the last meeting. Some economists now expect a long pause on rate changes. They say global energy risks are driving uncertainty in the UK. Wage growth has also slowed while unemployment has risen slightly. This adds more pressure on the UK economic outlook. Households may still feel price pressure despite lower inflation now. The energy price cap helps set limits on what suppliers can charge households. Many families saw lower bills in April but still face high living costs. The inflation outlook remains uncertain due to global conflicts and oil prices. Supply chain costs for manufacturers are rising and may affect shop prices. The Bank of England may delay any interest rate cuts for longer. Consumer spending could slow if fuel and food prices rise again. Overall, inflation is easing now but risks of a rise remain strong. Producer price inflation shows factories face higher costs that may spread to shops. Fuel prices at pumps are closely linked to global oil markets. Services inflation is watched because it shows long term price pressure. The government says it is taking steps to support households through the year. Many households may still feel pressure on budgets despite falling inflation. The Bank of England is likely to stay careful with any policy changes. Last year inflation was higher and caused stronger pressure on household budgets. Global instability continues to shape energy and food price trends worldwide. Economic conditions will depend on how energy markets move in coming months. Inflation remains a key concern