Same Shock, Different Buffers — UK and Euro Area Inflation, April 2026
- May 20
- 1 min read
UK headline CPI fell to 2.8% in April 2026, below consensus and driven lower by the Ofgem price cap change. The euro area confirmed 3.0%, with energy surging to 10.8% — its highest since February 2023. The divergence in headline is a regulatory artefact; both economies are absorbing the same Iran-driven energy shock, with UK producer input prices at 7.7% confirming the pipeline pressure building behind the consumer print.