CPI inflation rate DOUBLES to 1.5% in April amid rising fears prices could soar amid coronavirus bounceback
Fears of a spike in inflation were fuelled today as official figures showed the CPI rate doubled to 1.5 per cent in April.
The headline index was slightly higher than economists had expected, and up from an annualised figure of 0.7 per cent in March.
Although it is still below the Bank of England‘s 2 per cent target, concerns have been voiced that it will keep rising as the economy bounces back from the pandemic and high government spending feeds through.
The Office for National Statistics said the rise was partly in comparison with sharp price falls seen at the same time in 2020.
The headline CPI was 1.5 per cent in April, slightly higher than economists had expected, and up from an annualised figure of 0.7 per cent in March
Chief Economist Grant Fitzner said: ‘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.
‘As the price of crude oil continues to rise, this has fed through to the cost of motor fuels, which are now at their highest since January 2020.’