Martin Lewis issues inflation rate warning and says 'it matters'

The UK inflation fell to the lowest level in nearly three years in April, according to official figures. Consumer Prices Index (CPI) inflation slowed to 2.3 per cent in April, down from 3.2 per cent in March, according to the Office for National Statistics (ONS).

Martin Lewis explained what this drop means for you in terms of interest rates when he appeared on ITV Good Morning Britain on Wednesday (22 May). Susanna Reid said: "Two per cent was the target figure - the Bank of England target." Mr Lewis said: "We are just above that - just above matters.

"It is high end of the range and my instinct means the interest rate cut comes in August, rather than July. It is not as low as people were expecting. That has been the big debate - whether it is August or June. Inflation has not come down as much as it could have done."

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Taking to Twitter, now X, Mr Lewis said: "CPI inflation for down from 3.2% to 2.3% in April (so prices rose in year to April by 2.3%) This is at the high end of expectations, the Bank of England target has not been hit. It means an interest rate cut in June is less likely, August more likely (I'm explaining it and answering your questions throughout the morning on @GMB)."

He went on: "The PM talks about people "feeling the benefit" of lower inflation. Yet lower inflation still means rising prices (on top of previous high rises) A more accurate phrase would be "stopping feeling increased pain.""

In reply, a social media user said: "It’s worse than that. Even small increases are intolerable for most families at this point. The way that they word it is misleading and unacceptable." Another said: "Wages are going up more than inflaion which hardly gets pointed out too."

"If wages are also rising commensurately, then the PMs remakes could be true, however the gov did freeze the tax brackets, miraculously before inflation kicked off, so take home pay for many has called.despite wage growth," another said.

"Do you think the government is doing deliberate things to lower inflation as a number without the general public actually feeling the benefit? After all what is the point of a falling number if we don’t actually feel better off?" another asked Mr Lewis.