UK CPI rises beyond expectations in April, highest since June 2013

The UK consumer prices resumed its bullish momentum in April, arriving at 2.7% y/y, versus 2.3% booked in March, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also accelerated in April, coming in at +2.3 y/y. Markets had predicted the core figures to decrease to +2.2%.

On monthly basis, the UK inflation figures bettered expectations, coming in at 0.5% last month, as compared to 0.4% previous and expectations of +0.4%. 

ONS reports, “Air fares were the main contributors to the increase in the rate in April 2017, although this balanced out a downward effect of similar magnitude in March 2017 and is due to Easter falling later than last year. Rising prices for clothing, vehicle excise duty and electricity also contributed to the increase in the rate.”