UK annual consumer price inflation rate eases to 2.8% in April
UK consumer price inflation was cooler than expected last month, data on Wednesday showed, despite a ‘large increase in motor fuel prices’.
The Office for National Statistics said consumer prices rose 2.8% in April, cooling from a 3.3% surge in March. A loftier rate of 3.0% had been expected for April, according to consensus cited by FXStreet.
The Bank of England has a 2% inflation target.
Consumer prices rose 0.7% in April from March, below expectations of a 0.9% rise.
‘Housing and household services made the largest downward contribution to the monthly change,’ the ONS said. ‘An upward contribution from a large increase in motor fuel prices was counteracted by downward effects from other categories in the transport division.’
Excluding food, energy, alcohol and tobacco, the annual core consumer price inflation rate cooled to 2.5% in April from 3.1% in March, below consensus of 2.6%.
Annual service price inflation eased markedly to 3.2% in April from 4.5% in March.
Meanwhile, producer price inflation picked up. Producer prices surged 7.7% on-year in April, picking up speed from 5.3% in March, topping consensus of 5.9%.
On a monthly basis, producer prices rose by 2.4% in April, beating a 1.0% forecast.
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