<div id="readability-page-1">Unexpected inflation drop: UK inflation eased to 2.8% in April, below forecasts of 3.0%, largely due to slower housing and energy price growth. Market and policy impact: The softer reading boosted UK stocks and reduced pressure for aggressive BoE tightening, though markets still expect some rate hikes. Risks remain high: Analysts caution that rising oil prices and geopolitical tensions could reverse recent inflation gains in the coming months.</div>

<p>UK inflation fell to 2.8% in April, below the expected 3.0%, driven by slower housing and energy price growth. This eased pressure on the Bank of England for aggressive rate hikes, positively impacting UK stocks. However, analysts warn that rising oil prices and geopolitical tensions could threaten recent inflation improvements.</p>

- UK inflation decreased to 2.8% in April, falling below the anticipated 3.0% due to slower growth in housing and energy prices.  
- This decline positively affected UK stocks and alleviated the urgency for aggressive tightening by the Bank of England, although some rate hikes are still expected.  
- Analysts warn that increasing oil prices and geopolitical tensions may jeopardize the recent improvements in inflation.

UK inflation dips to 2.8% as BoE policy outlook shifts