UK inflation fell to 2.8% in April, down from 3.4%, with energy prices the main driver of the drop. The Office for National Statistics noted the government’s energy bill support and lower wholesale prices before the Iran crisis as the key factors. The OBR and Bank of England have both flagged that this is likely the low point — the Strait of Hormuz situation will push energy costs back up through the summer, so anyone expecting the MPC to move quickly on the back of this number should probably reconsider.

On that front, the government has quietly loosened certain Russian oil sanctions, citing supply concerns linked to the effective blockade of the Hormuz strait. The Treasury minister described it as time-limited. The Conservatives have gone after Starmer on it at PMQs. It is an awkward political moment, but the practical logic is straightforward — the government is trying to prevent a fuel price spike compounding the inflation rebound it already knows is coming.

Reeves is also preparing a planning overhaul that would designate critical clean energy and infrastructure projects as matters of national importance, shielding them from judicial review on most grounds. The framing is explicitly tied to the Iran crisis and energy security. For anyone watching the infrastructure and renewables space, this could materially accelerate project timelines if it passes.

On food prices, the government has been in talks with supermarkets about a voluntary price cap on basics including milk, bread and eggs. Ministers confirmed discussions have taken place but ruled out a mandatory cap. The supermarkets pushed back hard, and the retail sector’s response was dismissive. Worth watching whether the voluntary route goes anywhere, but for now it looks like noise.

Xi and Putin met in Moscow, with both leaders promoting deeper energy and technology cooperation. The timing — days after Trump’s Beijing visit — is pointed. Xi’s public warning against a “law of the jungle” in international affairs was aimed squarely at Washington. The EU, meanwhile, is reportedly considering appointing either Merkel or Draghi as a dedicated interlocutor with Moscow, as US-led Ukraine talks stall. Neither appointment would be quick or straightforward, but the fact it is being discussed signals European frustration with the current diplomatic vacuum.

Morgan Stanley has begun issuing China-only iPhones to Hong Kong staff travelling to the mainland, citing data security concerns. It is a small operational story but an indicator of how seriously major financial institutions are now treating the cross-border data risk in the China context.

Google’s IO 2026 announcements included conversational AI search across Gmail and YouTube, plus background “information agents” that monitor topics and push alerts. Nothing that changes the competitive picture overnight, but the pace of Gemini integration across Google’s core products is accelerating in ways that matter for enterprise productivity tooling decisions.

UK CPI for April is already out. The next scheduled event to watch is the Bank of England’s chief economist Huw Pill speaking on Thursday.

Sources

Guardian, Al Jazeera, BBC News, Ars Technica, FT, TechCrunch, Politico, The Economist — 2026-05-20