UK inflation rate jumps to 4.5%

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  • xman
    Admin
    • Sep 2006
    • 24007

    UK inflation rate jumps to 4.5%

    17 May 2011 Last updated at 04:51 ET The UK Consumer Prices Index (CPI) annual rate of inflation rose to 4.5% in April, up from 4% in March.

    The rise was due to a jump in transport costs, particularly air and sea fares, and alcohol and tobacco.

    However, the Retail Prices Index (RPI) measure of inflation - which includes mortgage interest payments - fell slightly to 5.2% from 5.3% in March.

    The rise in CPI was bigger than analysts had forecast and follows a surprise fall in the index last month.

    CPI is now at its highest level since October 2008.

    The Office for National Statistics (ONS) said "by far the largest upward effect" on prices came from air transport, where fares rose by 29% between March and April. Sea fares rose by 22.3%.

    It said the fact that Easter was in April this year but in March last year partly explained the jump in prices.

    Alcoholic drinks and tobacco rose by a record 5.3% in April.





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