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Consumer price inflation in shock jump
Consumer price inflation jumped more than forecast in April – fuelled by soaring travel costs around Easter and higher duty on alcohol and tobacco, official data showed.
The surprisingly sharp rise reinforces the policy dilemma for the Bank of England, keen to keep interest rates low to support a sluggish economy.
The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5 per cent in April, up from four per cent in March.
The rise was due to a jump in transport costs, particularly air and sea fares, and alcohol and tobacco.
However, the Retail Prices Index (RPI) measure of inflation – which includes mortgage interest payments – fell slightly to 5.2 per cent from 5.3 per cent in March.