UK inflation eases more than expected to 2.8%, led by lower electricity and gas bills – business live

UK April inflation cooled more than expected to 2.8% from 3.3%, with core easing to 2.5% and food inflation slowing to 3.0%. The immediate disinflationary impulse came from lower electricity and gas bills, but the article flags a sharper inflation rebound ahead as the Iran conflict feeds into energy costs and the Bank of England’s worst-case scenario points to inflation reaching 6.2% early next year. For precious metals, the near-term takeaway is mixed but broadly supportive for gold as a hedge: softer UK inflation would normally ease rate pressure, yet the market is simultaneously being warned that Middle East-driven energy shocks could re-accelerate inflation and keep bond markets under strain. The piece also notes Asian equities falling and inflation fears hammering bonds, which is consistent with a risk-off backdrop that can support bullion demand. The key catalyst is the Bank of England’s inflation path over the next few months, especially whether higher energy costs reverse today’s downside surprise. For metals traders, the broader message is that inflation volatility is back on the agenda, and any sustained move higher in energy prices or bond yields would likely reinforce safe-haven interest in gold rather than silver or PGMs specifically.