TOP NEWS: Annual UK inflation heats up to 1.5% in April - ONS

(Alliance News) - UK inflation picked up sharply in April as coronavirus restrictions eased, ...

Alliance News 19 May, 2021 | 6:18AM
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(Alliance News) - UK inflation picked up sharply in April as coronavirus restrictions eased, according to the latest figures from the Office for National Statistics on Wednesday.

On an annual basis, UK consumer prices rose 1.5% in April, accelerating from inflation of 0.7% in March. The latest reading just beat market consensus, cited by FXStreet, for a 1.4% increase.

Consumer price inflation rose 0.6% month-on-month in April, quickening from a 0.3% rise in March. The print was in-line with market forecasts.

The ONS said rising household utility, clothing, and motor fuel prices made the largest upward contributions to inflation growth in April.

"Inflation rose in April, mainly due to prices rising this year compared with the falls seen at the start of the pandemic this time last year. This was seen most clearly in household utility bills and clothing prices," ONS chief economist Grant Fitzner explained.

Earlier this month, the Bank of England reiterated that it does not intend to tighten monetary policy until there is "clear evidence" that inflation can achieve the bank's 2.0% target sustainably. Further, the BoE had said it anticipates CPI inflation to temporarily rise above the target towards the end of 2021 as the economy reopens.

Separately the ONS said, UK producer prices jumped 3.9% on an annual basis in April, having increased 2.3% in March. Market consensus was for a 3.5% rise in PPI.

Month-on-month UK producer price inflation was 0.4% in April, decelerating from an 0.8% rise in March.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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