The rate increase chances dim after the fall of the inflation

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The chances of an interest rate increase later this year, fell after Consumer Price Inflation fell to 2.4% in April, its lowest level since the month of March 2017.

The fall of 2.5% in March, has been charged on the timing of Easter, which means a seasonal rise in air fares was not included in April of this year.

The figures do not show the effect of the sugar tax on soft drinks and fruit juices.

Analysts say that it may not be a rate increase in 2018.

“The lower Inflation for the third month in a row in addition, bumps all hope of the end of the summer the rise in the rate of the Bank of England,” said Ben Brettell, senior economist at Hargreaves Lansdown.

“The Bank is currently thought likely to put rates up in August, but I think we might not see a rate increase for the rest of the year,” he said.

Mike Hardie, head of inflation at the Office for National Statistics (ONS). said: “Inflation continued to slow in April, with the air of rates making the biggest downside of the contribution, due to the date of Easter. This was partially offset by the increase in gas prices.”

Oil prices are at their highest level for three-and-a-half.

The average price of gasoline has increased from 127.22 p a litre and diesel at 129.96 p following a rapid rise in the cost of oil.

This means that the fall in inflation could be short-lived, according to analysts.

“The recent weakness of the pound and rising oil prices are a matter of concern and could quickly reverse the decline of inflation,” said Kevin Doran, chief investment officer at AJ Bell.

He also warned that the falling value of the pound could increase the costs of imported goods for home buyers and businesses.

Analysis: Andy Verity, BBC economics correspondent

The pound dropped around half a cent against the dollar after the inflation figures were released. He then recovered to trade at $1.3368.

In April, the book has climbed as high as $1.4325 on expectations that UK interest rates would soon be moving higher.

However, since then, weaker economic data has reversed the thought and the british pound has fallen almost 7% more than in April high.

The Inflation of the Retail Price Index (RPI) measure rose by 3.4%, from 3.3% in March.