UK inflation slows more than expected to 0.3% in April

UK inflation slowed more than expected in April, moving further away from the Bank of England's 2% target, official data showed on Tuesday.

The Office for National Statistics said the consumer price index rose 0.3% in the year to April, down from 0.5% in March. Analysts had expected 0.4% year-on-year growth.

Between April and March inflation also eased to 0.1% from the previous 0.4% month-on-month gain, missing forecasts of 0.3%.

The slowdown was driven by declines in air fares and prices for clothing, vehicles and social housing rent.

An earlier Easter this year affected airfares as people took flights for the long weekend in late March instead of April.

Clothing was discounted as an unseasonably cold April deterred shoppers from buying the latest season's fashion.

The falls offset rising prices for motor fuels and for certain recreational goods and cultural services. Food prices were unchanged after falling the same month a year ago.

“(BoE) Governor Mark Carney is expected to write an open letter to Chancellor George Osborne whenever CPI inflation misses its target by more than one percentage point, and he will need to get his pen and paper out once again after today’s data," said Dennis de Jong, managing director at UFX.com.

“There are signs inflation could finally tick upwards in the second half of the year as oil prices strengthen and earnings pick up off the back of the new National Living Wage. Some observers suggest that the two percent target could be attainable by late 2017, although forecasting too far into the future isn’t recommended until the outcome of the UK’s vote on EU membership is known.”