Tuesday, May 17, 2011

UK inflation rate rises in April 2011...unexpectedly-BBC

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5/17/11, "UK inflation rate rises to 4.5% in April," BBC

"The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March.

The rise was due to a jump in transport costs, particularly Easter rises in 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% from 5.3% in March.

The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month.

CPI is now at its highest level since October 2008.

The Office for National Statistics (ONS) said "by far the largest upward effect" on prices came from air transport, where fares rose by 29% between March and April. Sea fares rose by 22.3%."...

"With pay rises running at about 2%, an inflation rate more than double that is

  • cutting the spending power of consumers."

Pym, BBC Chief Economics Correspondent

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