ATION rose in April, according to official statistics released yesterday, as the effect of a late Easter sent air fares spiking upwards.
The consumer price index (CPI) ticked upwards to 1.8 per cent last month, from 1.6 per cent in March. A slightly smaller increase had been expected.
In the transport portion of the inflation basket, the Office for National Statistics (ONS) recorded an 18 per cent rise in air fare prices and a 22 per cent jump in sea fares on the previous year – items that go up during peak holiday travel periods.
“Inflation is stabilising close to the Bank of England’s two per cent target, giving little reason to keep rates at rock bottom levels,” said Berenberg’s Rob Wood.