Investing.com – Consumer price inflation in the U.K. rose more-than-expected in April, climbing to the highest level since September 2008, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation rose to a seasonally adjusted 4.5% in April, up from 4.0% in March.
Analysts had expected U.K. consumer prices to rise by 4.1% in April.
The rate of inflation was double the Bank of England’s 2.0% target. The BoE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
According to the report, the main factors affecting CPI were an increase in transport, alcoholic beverages and tobacco prices.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose more-than-expected in April, increasing to a seasonally adjusted 3.7%, after rising by 3.2% in March. Economists had expected U.K. core CPI to increase by 3.4% in April.
The retail price index climbed 5.2% in April, falling short of expectations for a 5.3% increase.
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD rising 0.6% to hit 1.6288.
Meanwhile, European stock markets were down. The FTSE 100 shed 0.25%, the EURO STOXX 50 slipped 0.1%, France’s CAC 40 dropped 0.22%, while Germany's DAX was down 0.65%.
In a report, the U.K. Office for National Statistics said that the rate of consumer price inflation rose to a seasonally adjusted 4.5% in April, up from 4.0% in March.
Analysts had expected U.K. consumer prices to rise by 4.1% in April.
The rate of inflation was double the Bank of England’s 2.0% target. The BoE Governor is obliged to write to the Chancellor of the Exchequer every three months that inflation is more than a percentage point above or below its target.
According to the report, the main factors affecting CPI were an increase in transport, alcoholic beverages and tobacco prices.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose more-than-expected in April, increasing to a seasonally adjusted 3.7%, after rising by 3.2% in March. Economists had expected U.K. core CPI to increase by 3.4% in April.
The retail price index climbed 5.2% in April, falling short of expectations for a 5.3% increase.
Following the release of that data, the pound was up against the U.S. dollar, with GBP/USD rising 0.6% to hit 1.6288.
Meanwhile, European stock markets were down. The FTSE 100 shed 0.25%, the EURO STOXX 50 slipped 0.1%, France’s CAC 40 dropped 0.22%, while Germany's DAX was down 0.65%.