UK interest rates forecast to jump above 5% this year after higher-than-expected inflation – as it happened

Rolling, live coverage of business, economics and financial markets as consumer price index inflation reaches 8.7%, well above forecasts

UK inflation dropped to 8.7% in the year to April, the first time it has dropped below 10% since August and the lowest since March 2022.

Yet that steep fall - long expected because of the big increase in energy prices in April 2022 - has not all been happy news. It was less dramatic than expected by economists.

Sugar 47.4%

Olive oil 46.4%

Eggs 37%

Low-fat milk 33.5%

Cheese and curd 30.6%

Flours and other cereals 30%

Pasta products and couscous 27.7%

Ready-made meals 20.8%

Butter 20.1%

Bread 18.6%

Jams, marmalades and honey 17.9%

Fish 14.2%

Pizza and quiche 11.9%

Fruit 10.8%

UK inflation has come in higher than pretty much anyone, including members of the Bank of England's committee, expected in April.

This undoubtedly makes life harder for policymakers and no doubt raises the chance of yet another 25bp rate hike in June.