UK consumer inflation rises to 3 ½-year high of 2.7 percent

UK consumer inflation rises to 3 ½-year high of 2.7 percent

UK consumer inflation rises to 3 ½-year high of 2.7 percent

But energy price rises from the "big six" suppliers more than offset a slight drop in petrol prices and clothing and vehicle tax also added to the pressure.

"Such spending will get harder to maintain as inflation remains above 2 per cent, and perhaps goes even higher, and so cuts into the growth of wages and living standards in real terms".

"But the pound has clearly risen against the dollar much more than would appear justified by yield differentials".

The Bank of England warned last week as measured by the Consumer Prices Index (CPI), it would peak at just below 3 percent this year. "That boost, along with the pick-up in growth in Europe will mean stronger export performance in 2017, partly offsetting weaker domestic demand".

The UK Consumer Price Index (CPI) has reached levels last seen in September 2013 as a result of the different dates for Easter compared to past year, and higher air fares.

Fuel and lighting inflation rose to 6.13 per cent compared to 5.5 per cent in March.

That marked an increase of half a percentage point from the 1.9 per cent rate recorded in February and was the highest annual inflation rate since October 2014.

The retail prices index, which includes the impact of mortgage costs, rose to 3.5%, up from 3.1% in March.

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The higher than expected increase in Inflation puts the spotlight on the Bank of England's Monetary Policy Committee.

While latest indicators have shown that the nation's inflation rate is easing, there are divided sentiments on the reality of the claims as food and other household items remain steadily high, despite various interventions by the government.

The main upward impact came from air fares, which jumped by 18.6% month-on-month in April due to the timing of the Easter holidays.

The Reserve Bank is expected to keep rates on hold this year as near-term inflation outlook is benign, but a cumulative 50 bps hike in 2018 is likely as growth accelerates, says a report.

Businesses are under similar pressure after more figures showed the cost of raw materials jumping 16.6% on past year thanks to the pound's fall, although, so far, factory gate prices have risen just 3.6%.

After 15 months on the rise, the consumer price index (CPI) which measures inflation rate in the Nigerian economy has been on the decline, dropping for the third consecutive month.

However, net inflation, which strips out fuel prices, grew 1.2% and influenced core inflation by 0.10pp.

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