United Kingdom: Inflation comes in at highest level since February 2020 in April
Consumer prices increased a seasonally-adjusted 0.64% over the previous month in April, accelerating from the 0.29% rise recorded in March. April’s reading marked the sharpest increase in prices since August 2018. Looking at the details of the release, housing and utilities prices rose at a quicker pace in April compared to the previous month, while price pressures for transportation picked up pace.
Inflation came in at 1.5% in April, which was up from March’s 0.7%. April’s result marked the highest inflation rate since February 2020. Meanwhile, the trend pointed up mildly, with annual average inflation coming in at 0.7% in April (March: 0.6%). Lastly, core inflation came in at 1.3% in April, up from the previous month’s 1.1%.
Later this year inflation is seen rising closer to the Bank of England’s 2.0% target due to a combination of higher energy prices, economic recovery and supply-chain pressure linked to Brexit.