In April, consumer prices added a substantial 1.0% over the previous month, which came in well above the 0.3% price rise observed in March. The monthly price increase mainly reflected higher transport costs (+0.5% month-on-month) driven by more expensive air fares as well as higher alcohol and tobacco prices (+0.2% mom). As a result, annual inflation jumped from 4.0% in March to 4.5% in April, the fastest annual increase in CPI since October 2008 and above the more moderate increase of 4.1% expected by the market. That said, although inflationary pressures are clearly mounting, the Central Bank is likely to continue to refrain from raising interest rates in order to bring inflation down to its target level of 2.0%. As stated by the Governor of the Bank of England Mervyn King in his letter to the Chancellor of the Exchequer on 16 May: attempting to bring inflation back to the target quickly risks generating undesirable volatility in output and would increase the chances of undershooting the target in the medium term." According to its Inflation Report from May, the Bank of England projects inflation to average 4.7% this year and to moderate to 3.0% in 2012.
United Kingdom Inflation
Inflation accelerates to a 30-month high in April
May 17, 2011
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United Kingdom Economic News
October 21, 2016
Following nearly four months of little or no news regarding formal negotiations with the European Union, in early October, Prime Minister Theresa May finally shed some light on the Brexit timeline and announced that Article 50 of the Lisbon Treaty will likely be triggered before the end of March 2017.
October 19, 2016
In September, jobless claims increased by 700 from the previous month, according to the Office for National Statistics (ONS).
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.