Consumer Inflation Rises In April To 1.8%

The consumer prices index (CPI) for April hit 1.8%, according to officially released figures.

The Office for National Statistics (ONS) said it was a rise of 0.2% on the March figure.

The rise was more than expected, up from its lowest level in more than four years.

The ONS said the late Easter break helped push up the cost of travelling.

Fuel prices were flat in April, compared to a 2.1p per litre month-on-month fall recorded in 2013.

Food prices, especially for vegetables, helped cap the rise.

Core CPI, which excludes food and other household components, rose 2% – the strongest rate since September.

The Bank of England (BoE) target for inflation is 2% and the CPI has now been below that figure for five months.

The CPI’s six-month period of falls has now come to an end.

Weaker price growth has helped salaries and wages recoup lost ground since the 2008 financial crisis, however the latest figure show wage increases at 1.7% have now lost out to inflation again.

Meanwhile, the ONS said house prices were up 8% in March, year on year, slowing from a 9.2% figure in February.

The low level of inflation is helping the BoE to keep the base rate at its historic low of 0.5%.

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20 May 2014 | 10:03 am – Source:

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