British inflation cooled by more than expected in April but the slowdown did little to mask a tough outlook for households, with global costs from the Iran war set to hit them harder later this year, Reuters reports.

Consumer prices rose by an annual 2.8 per cent, down from March’s annual inflation rate of 3.3pc, official data showed.

It marked the lowest reading since March 2025.

“Sadly, this improvement is set to be short-lived as the impact from the Middle East conflict continues to build, with motor fuel prices rising at the fastest pace since the Ukraine war,” said Anna Leach, chief economist at the Institute of Directors.

The expected rise in inflation is likely to be around 4pc later this year, according to economists.